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proprietary copper recycling and cleaning technology and process. The recycling production process involves the fire refining of bulk recycled copper into high purity, low-oxygen content copper products, which is generally more cost effective for our customers than products manufactured from newly mined copper. In addition, the Company is capable of producing copper replacement products at 99.97% purity, which exceeds government and industry standards for pure copper, and is suitable for applications including power transmission, electronics and infrastructure.
We believe that our refined copper and CCA wire products address the needs of rapidly growing markets, and afford us a significant opportunity to increase our sales in the future. To accelerate growth, in 2010 we, have doubled our annual refined copper capacity to 50,000 tons through the launch of our second smelter, and completed 6 new copper wire production lines, increasing annual drawing capacity to 20,000 tons. Additionally, in the fourth quarter of 2010, we broke ground on our second copper recycling facility, which we expect to complete in the second half of 2011. Once this facility comes on line, our annual refined copper production capacity will increase to 100,000 tons.
We anticipate that we will continue to expand production capacity in all segments, but that the majority of our investment and resulting growth in sales volume will occur in the refined copper products segment, which caters to a very large, very diverse group of end markets.
Lihua sells its products primarily in China, either through distributors or directly to users, including distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries.
Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. To serve its diverse base of approximately 300 customers, Lihua has representatives in cities throughout China.
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