Lihua International, Inc.
Lihua International, Inc. is a copper clad aluminum (CCA) superfine magnet wire producer in China. Magnet wire is the basic building block of a range of motorized appliances and is mainly used for electrical conductivity.
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Lihua International secures first customer contract for copper anode product with major Chinese copper and metal conglomerate
Chinese manufacturer of alternative copper products Lihua International Inc. (Nasdaq: LIWA) has signed its first customer contract for its new copper anode product with one of the world's largest copper and metal conglomerates based in China, whose annual revenue totals approximately $6 billion.
Under the terms of the supply agreement, Lihua will supply a minimum of 1,000 metric tons of copper anode to this customer on a monthly basis.
Lihua launched production of copper anode from its newly built second smelter in July 2010, doubling its manufacturing capacity to 50,000 tons per year. It is due to fulfill this customer's supply orders starting this month and pricing will be determined upon delivery at the prevailing market price.
Copper anode is the fundamental building block for almost all pure copper products, and holds a wide range of potential uses.
Lihua expects profitability for its copper anode product to be similar to that of its copper rod product, it said.
"This supply contract represents a significant endorsement of our newest pure copper product from one of the largest copper conglomerates in both China and the world," said chairman and CEO Jianhua Zhu.
"We are currently working to optimize the allocation of our copper anode output to a few select customers to ensure that we are diversifying our customer base for this new product line, while quickly securing an elite group of customers with healthy demand. We are very excited to have forged our first partnership with this industry leader. "
The company expects copper anode products to provide meaningful contributions to both its top and bottom line beginning in the third quarter, with its second smelter beginning to operate at full capacity in September of this year, it said.
As previously announced, Lihua expects full year 2010 gross profit to increase by 46-53% over 2009, to $52.9 to $55.7 million, and adjusted net income to grow by 48-57% to $38.1 million to $40.3 million.
Lihua, through its two wholly-owned subsidiaries, Lihua Electron and Lihua Copper, is a manufacturer of copper replacement products for China's rapidly growing copper wire and copper replacement product market.
Current product offerings include CCA and copper wire, copper rod and copper anode. Its products are sold in China either directly to manufacturers or through distributors in the wire and cable industries and manufacturers in either the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries. The company is based in Danyang, Jiangsu Province.
Other Lihua International, Inc. news
- Lihua International's profit soar as Chinese demand drives copper sales
2010-04-01 - Lihua ramps up copper wire production capacity
2009-10-13
