Tongling Non-ferrous Copper Processing Sector----A New Profit Growth Point

Tongling Nonferrous Metals Group Holdings Co.,Ltd.(referred to as Tongling Nonferrous)was profitable as for its copper processing sector in 2015.In 2017,its achievements continued by making historic breakthroughs:Tongguan Copper Foil Company realized a YOY growth of 208.63%;Tongguan Copper ProductBranch has been making good performance formany yearsin standard meeting and design capacity reaching;copper processing companies like Jinvi Copper Corporation and Copper Crown are no more stuck in deep trouble but presenting strong growth in production and sales…Tongling nonferrous processing sector is driving quality industrial development with mid-and-high-end products,and has become the Group’s new profit growth point.

1.High-grade,high-precision,advanced technologies are new driving forces for development

Given“new normal” of economic development,Tongling nonferrous has been actively making innovations in transformation and bringing“green genes” to corporate development by stock upgrading and incrementaltransformation,based on the guidelines of“focusing on copper and expanding manufacturing”.

Just about three years ago,copper rod product was a weakness for local copper industry chain.In order to improve this aspect,relying on the policies of driving the transformation and upgrading of traditional industries in Anhui Province and Tongling City,Tongling nonferrous had been making intensified efforts to innovate and implemented with high standard this high-end copper wire processing project that boasts an annual output of 225 thousand metric tons of low-oxygen copper rod.

It is learned that Tongguan Copper Product Company hasbeen engaged in high-end production since its establishment.Its lowoxygen polished copper rods with cable and enameled wire as raw materials not only filled in gaps in the product chain of Tongling Nonferrous but also changed the landscape that Anhui has to purchase copper rod products from other cities as its main source.The company’s high-conductivity copper product was selected as Anhui strategic emerging industry.The feature of low oxygen,high conductivity and good elongation endows the product with extensive application scope such as nuclear power,high-speed railway,submarine cable and auto manufacturing.LME officially issued the Company with Registered Copper Testing Plant Certificate in 2016,which is a green path for it to go global.

Unlike Tongguan Copper Product Company,Copper Crown is a company that was run based on traditional enameled wire market,with low product added value and unsatisfactory profitability.In order to break the ice,the company has been striving to make technology innovations and new product R&D to tap into its high-end market.Meanwhile,it has been intensifying the introduction,digestion,absorption and re-innovation of processing technologies,to develop products with higher technical skills and added value.

Copper Crown is capable of manufacturing high-frequency-impulse-voltage-resistance enameled wire used in NEV driving motor,which is a successful demonstration of its progress,which is not only a product upgrading but also a product structure optimization.It is regarded as a new profit growth point of the company.According to the person in charge of the company,“We need to strengthen the business development efforts in terms of air condition compressor,NEV motor,explosionproof motor,phosphor copper ball,aluminum wire and microcrystalline phosphor ball.Wherein,we need to work harder to make breakthroughs in sales of NEV motor and aluminum wire.”

Anhui Tongguan Copper Foil Company created myths in copper processing,which covers the investment and construction of copper foil projectin Hefei,high-precision electronic copperfoilprojectin Chizhou and the construction of high-precision energy-storage ultra-thin electronic copper foil project.Within just 8 years,Anhui Tongguan Copper Foil Company has finished its constructions of“three”copper foil production bases in Hefei,Chizhou and Tongling,which helped it to seize copper foil market in China and even in the world.The three bases boast an annual output of 40 thousand metric tons of high-performance and high-precision electronic copper foil,wherein lithium battery of 17500 metric tons,ranking the first in domestic market and the fourth globally.

By continuously adjusting copper processing developing structure,Tongling Nonferrous has been modifying its development path and improving productbenefits,growing from traditional and inefficient copper wire,copper ball,copper rod and copper plate to highconductivity copper product,high-end alloy,high-precision electronic copper foil and lithium electricity copper and so on.“Highend"product is the driving force for copper and benefits as well as the lifeline of the whole copper processing sector of Tongling Nonferrous.

2.Innovation is the crucial driving force for development

With domestic and internationalmarkets expansion as its goal and with brand image building as its mission,Copper Crown has been modifying product mix to deal with market competition in recent years.It has successfully finished the development of new products like super-large high-adhesion enameled wire,vessel propulsion motor high-immersionresistance enameled wire,new type of winding wires of oil-immersed transformer,auto motor high-adhesion enameled wire and microsphere.9 national utility model patents were obtained.Copper Crown joined hands with universities and colleges to carry out scientific researches and they have made phased achievements in termsofNEV charging pile free-cutting Copper-Tellurim alloy.Phospher copper branch plant succeeded in producing rod billets during up-draw process,wining specialguidance capital of Anhui major science and technology projects.

Innovative development has been advanced significantly. In recent 8 years,Anhui Tongguan Copper Foil Company has applied for over 50 patents with over 30 ones have been approved by our country and 3 ones won the first prize of Scientific and Technological Advancement of Anhui and China Nonferrous MetalsIndustry Association.Severalcore technologies pioneered to fill the gaps in domestic technology fields and changed the landscape of total dependence on overseas import,which facilitates the localization processofChina’selectronic copperfoil industry.

To promote the development of high-precision copper strip to top level and to facilitate the transformation and upgrading of copper industry.In 2014,Tongling Nonferrous and Mr. Gao Weilin,a leading talent in internationalcopperprocessing world,coestablished Tongling Gaotong Science and Technology Company,and co-constructed production base for the 2nd and 3rd generation of lead frame high-end electronic copper strip.What’s more,they co-developed high-addedvalue and high-tech Cl94,C4450,C7025 highend alloys,which meansthe successof localization and breaks the landscape of total dependence on overseas import of high-end products.

In March,2016,Tongling Nonferrous and ShengyiTechnology Company signed a strategic partnership framework agreement that indicated a new strong relationship between leaders in copper foil and CCL sectors.The both sides will give full play to their respective resource strengths to build win-win situation and take the industrial lead together.

Tongling Nonferrous is getting more involved in the world of copper processing.

3.High-end market,new thoroughfareof development

“Only the market has the right to speak of products.Small scale won’t last long.High-end marketexploration is the foundation for development”---Tongling Nonferrous,by well knowing selection rules of the market.

Copper Crown is the forerunner of Tongling Nonferrous copper processing but it has been suffering from cheap processing cost.However in recent years,the company has aimed at wealthier manufacturing sectors such as air condition compressor,explosion-proof motor,NEV,copper foil and cable,where different degrees of progress can been seen in new products.Order quantity continuously increases and the company has become the supplier of Wolong Electric,Huaihai Motor and Jiaxipera and so on.What’s more,its products are exported to India and Malaysia.

Jinvi Copper Corporation gives full play to its internationally advanced production facility to successfully develop calendaring products with the maximum width of 1250mm and minimum thickness of 0.05mm that are sold to big foreign companies including ABB,Schneider,Siemens.What’s more,the company has been engaged in transformer and Photovoltaic industries and alloy manufacturing in recent years.Driven by ever-increasing order quantity,related production has taken up about 1/3 of total of the company.Collaboration with AW has been re-launched and related products cover 4 countries and regions in Southeast Asia.Export business enjoyed a YOY increase of 27%and direct export volume hit a history record.

High-precision section copper strip production is a field that Tongling Nonferrous failed to get involved in.In August,2014,Tongling Nonferrous went abroad and joint hands with France Griset Company to co-establish Tongling Griset Electronic Material Company,which adopts the world-class forging and rolling techniques to develop and produce highprecision section copper strip.In 2016,Tongling Nonferrousacquired FranceTG Griset Company,which made “Tongguan”the bridgehead for Tongling Nonferrous’further development in European market,and the sales to developed countries in Europe and America would enjoy a great future.

Copper foil manufacturing is regarded as a cash printing machine in copperindustry and Tongling Nonferrous cherishes it like it were a“gold baby”.Its products keep making progress from producing high-precision electronic copper foil of 9 micrometer to 210 micrometer at the very beginning,to current production of lithium battery copper foil of 7 micrometer,then to the successful R&D of lithium battery copper foil of 6 micrometer.One batch after another,many types of knockout products have been released and Tongguan CopperFoil Company has rapidly grown into a large production base in China for high-end electrical materials and basic electronic and information materials.Part of its products have been present in the industrialchain ofdomestic and international giants such as Apple,Samsung and Lenovo via suppliers like Shengyi Science and Technology and Foxconn.

After the “13th Five-Year Plan”,Tongling Nonferrous will strive to take the lead in domestic and foreign copper foil markets,who will continue to make surprising achievements!