Furukawa Electric Plans to Boost Lithium-ion Copper Foil Global Share to 60%

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Researched by Industrial Info Resources (Sugar Land, Texas)--In March, Furukawa Electric Company Limited (TYO:5801) (Nikko, Japan) will establish a new company, Furukawa Electric Copper Foil Taiwan Company Limited, in Taiwan to head the company's production of copper foil for rechargeable batteries outside of Japan. Furukawa Electric already has an established presence in Taiwan where it produces copper foil circuits.

With its Imaichi complex, Furukawa Electric occupies at least 40% of the global market share in copper foil used in lithium-ion batteries for personal computers and mobile phones. The Imaichi site has a capacity of 6,600 tons per year. However, the company is also looking to boost domestic capacity in the near future. With the surge in demand for lithium-ion batteries and the growing presence of hybrid vehicles and electric vehicles, Furukawa Electric is planning to double production capacity at Imaichi by the beginning of next year.

Through its new subsidiary in Taiwan, the company is planning to begin construction on the copper foil plant later this year in Yunlin's Douliu Industrial Park. Construction on the new plant is being scheduled in two phases. Phase I is set for completion toward the end of 2012. The second phase is expected to commence in mid-2013. By the time the $143 million Taiwan plant is completed in mid-2014, it will have a capacity of 12,000 tons per year that will be directed exclusively at vehicle batteries.

Once the new plant and the expansion are complete, Furukawa Electric aims to control 60% of the global market for lithium-ion copper foil. For all copper foil production, including copper foil circuits, the company controls more that 80% of the global market.

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