Mainboard-listed Hu An Cable Holdings, the China-based wire and cable manufacturer, says it recently acquired 61,335 square metres of land in Jiangsu Province for RMB21.2 million ($4.18 million) to build its RMB88.9 million copper rod plant.

The land is located adjacent to the group’s existing production facilities, with a tenure of 50 years. Once completed, the plant will triple its annual production capacity of copper rods from 21,000 tonnes to 75,000 tonnes by September 2011.

In addition, Hu An Cable will be constructing a new RMB67.7 million vertical melt furnace production line with a daily production capacity of 300 tonnes at the new plant. The vertical melt furnace production line will be able to produce three major products, namely, copper rods, standard copper wires and stranded copper wires.

The vertical melt furnace production line will significantly improve its production efficiency through the reduction of energy consumption and the extension in the life span of the equipments.

The three major products from the new plant will both be used internally and sold to other wire and cable manufacturers. 

The acquisition of land, construction of new plant and acquisition and installation of the vertical melt furnace production line will be fully financed through the proceeds raised from the issuance of Taiwan depository receipts by the group in October.