Northern Copper Industry Plans to Increase Investment in Copper Clad Laminate Project

On May 30th, Northern Copper announced the plan for issuing A shares to specific targets in 2023. The Company plans to issue shares to no more than 35 specific investors, with the number of shares issued not exceeding 30% of the total share capital of the Company before this issue, and the total amount of funds to be raised not exceeding 1 billion yuan, which will be used for the project of 50,000 tons of high-performance rolled copper strip foil and 2 million square meters of copper clad laminate with an annual output of Beitong New Materials and to supplement the Company's working capital. It is planned to use the raised funds of 700 million yuan and 300 million yuan respectively.

According to the announcement, the implementation subject of the above-mentioned fundraising project is Beitong New Materials, a wholly-owned subsidiary of Northern Copper Industry, which is located in Yuncheng Economic and Technological Development Zone, Shanxi Province. The total investment of the project is 2.396 billion yuan, and advanced production equipment at home and abroad will be introduced to build new production lines. After the project is fully completed, the company will increase the annual output of 50,000 tons of high-performance calendered copper strip foil and 2 million square meters of copper clad laminate.

Beitong New Materials was originally a wholly-owned subsidiary of Zhongtiaoshan Group, the controlling shareholder of Fangtong, and its industry is the non-ferrous metal rolling processing industry downstream of non-ferrous metal smelting. Its business scope includes the production and sales of copper and copper alloys, high-precision copper plates and strips, high-performance rolled copper foils and copper clad laminates. In November 2022, Northern Copper paid 358 million yuan in cash to acquire 100% equity of Northern Copper New Materials, extending the industrial chain and developing deep processing of copper.

It is reported that calendered copper foil and copper clad laminate are important raw materials for integrated circuits and printed circuit boards (PCB). Printed circuit board, as a key electronic component in modern electronic equipment, has a broad market.

Northern Copper said that after the fundraising construction project is put into production, high-performance copper strip, rolled copper foil, flexible copper clad laminate and other products will be added to the existing products of the company, so as to extend the industrial chain and enhance the added value of products and the competitiveness of the company.