(Yicai) May 14 -- China Jushi said it will invest CNY4.43 billion (USD653 million) to expand production of electronic-grade glass fibers and electronic cloth used in printed circuit boards, as the fiberglass giant moves to capitalize on soaring demand for artificial intelligence-related computing infrastructure.
 

Jushi plans to add a production line in Huai’an in China’s eastern Jiangsu province with the annual capacity to turn out 50,000 tons of electronic-grade glass fibers and 320 million meters of electronic cloth, the Tongxiang-based company announced yesterday.

Jushi is doubling down on the buildout just months after bringing its first electronic-grade glass fabric facility in Huai’an online in March. Designed to produce 390 million meters of electronic cloth and 100,000 tons of electronic-grade glass yarn annually, the plant is already the world’s largest single electronic-grade fiberglass production line.

Jushi said the capacity expansion will help it to optimize business structure, upgrade product mix, improve green manufacturing capabilities, and boost overall economic efficiency.

Once completed, the project will have a pre-tax investment yield of nearly 11 percent, Junshi noted. Construction is expected to take about 18 months.

The performance of electronic-grade glass fibers directly determines the dielectric properties, thermal expansion coefficient, and reliability of PCBs, so they can be seen as the key underlying raw materials of the digital economy.

Jushi sold 1.06 billion meters of electronic cloth last year, ranking first in China with a market share of between 35 percent and 40 percent.

The firm’s Shanghai-listed shares [SHA: 600176] ended down 1.3 percent at CNY37.62 (USD5.54) apiece today, after gaining 3.2 percent at the open. Benefiting from strong demand for Jushi’s products, the stock has soared 120 percent since the end of last year.

Editor: Futura Costaglione