SKC Inc, the world’s largest producer of copper foil and part of South Korean conglomerate, SK Group is planning to spend USD 620 million to build its first overseas manufacturing factory for copper foil in Malaysia. SKC has partnered with its copper foil-making unit, SK Nexilis to boost the domestic manufacturing of copper foil, which is the key material for electric vehicle batteries.
The construction will take place in the second half of 2021 and is expected to begin commercial production in 2023 with an annual capacity of 50,000 tons. SKC has signed a memorandum of understanding (MOU) with local authorities in March 2021 at the Kota Kinabalu Industrial Park (KKIP) of Sabah state for 400,000 square meters of 30-year land leasing. KKIP makes a strategic choice for manufacturing investors as it has a seaport and an international airport, excellent infrastructure, low power costs, and stable supply. SKC also plans to push for the new plant to become the industry’s first RE100 workplace, a global campaign to meet power demand 100% with renewable energy.
Aside from Malaysia, SK Nexilis is considering building more buildings in Europe and the United States, to increase its existing production capacity of 34,000 tons to 102,000 tons in 2023. This is mainly due to the growing demand for copper foil from lithium-ion battery makers. The firm further targets to expand local output to more than quintuple its production by 2025.
(Sources: Business Korea; Borneo Today)