Iljin materials attracts new investment to boost elecfoil production in Malaysia

By Lim Chang-won Posted : November 13, 2019, 12:30 Updated : November 13, 2019, 12:30

[Courtesy of Iljin Materials]

SEOUL -- Iljin Materials, the producer of core materials for lithium batteries in South Korea, will boost production at its subsidiary in Malaysia with a new investment of about 600 billion won ($515 million) from a domestic private equity fund.

Iljin said Wednesday that its branch in Malaysia has attracted 600 billion won from STIC Investments, a private equity fund in South Korea. The investment would be used to boost the capacity of Iljin's plant in the Sama Jaya Free Trade Zone from 10,000 tons of elecfoil per year to 80,000 tons. Iljin's plant in South Korea is capable of churning out 20,000 tons per year.

Elecfoil, which is a thin copper foil with a thickness of 10 micrometers or less, is a core material for rechargeable batteries and printed circuit boards. A printed circuit board mechanically supports and electrically connects electronic components or electrical components.

Iljin said that some 300 billion won of perpetual convertible bonds will be issued this month to expand facilities in Malaysia. Afterward, it will decide on the timing of the issuance in line with demand. The company plans to differentiate its domestic plant into high-value products for semiconductors, while its Malaysian plant will be specialized in elecfoil for secondary batteries.
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