It expects expansion to meet demand for laminates, a key component of PCBs
Kingboard Chemical Holdings plans to spend 800 million yuan (HK$749.84 million) this year to expand capacity and invest in raw materials production, as part of efforts to meet rising demand and lower costs.
The world's largest maker of laminates - a key component of printed circuit boards (PCB) found in electronics products - plans to increase its capacity to make paper laminates by 12 per cent to 2.8 million sheets this year and glass epoxy laminates by 21 per cent to 1.7 million sheets.
Kingboard, listed on the main board, commands 30 to 40 per cent of the global paper laminates market and nearly 10 per cent of the glass epoxy laminates sector, chairman Paul Cheung Kwok-wing said.
The company also plans to produce more raw materials on its own to guard against profit erosion, as input prices rise sharply amid lower prices for its finished products.
Kingboard will increase capacity 12 per cent to 1,800 tonnes for copper foil by year-end, bleached kraft paper 100 per cent to 3,600 tonnes, glass yarn 100 per cent to 2,000 tonnes, formalin 25 per cent to 50,000 tonnes and epoxy resin 50 per cent to 3,000 tonnes.
Copper foil, kraft paper, glass fabric and glass yarn are components of PCBs, which are glued together with epoxy resin. Formalin is a raw material of epoxy resin.