Mitsui Kinzoku to invest RM4.87bil in new copper foil plant in Malaysia

KUALA LUMPUR: Japanese metal materials manufacturer Mitsui Kinzoku Co Ltd plans to invest about RM4.87 billion to build a new copper foil manufacturing plant in Malaysia to capitalise on growing demand from the artificial intelligence (AI) and semiconductor industries.

In a company notice, Mitsui Kinzoku said the new plant will be built near its existing subsidiary, Mitsui Copper Foil (Malaysia) Sdn Bhd, in Shah Alam.

The plant will manufacture MicroThin carrier-supported ultra-thin copper foil and VSP electrode posited copper foil, which are used in semiconductor packaging and high-frequency circuit boards, respectively.

Operations are scheduled to begin in phases from April 2031, the company said.

"To ensure the continued stable supply of its copper foil products to customers amid the anticipated continued rapid growth of the AI and semiconductor markets, the company has decided to construct a new copper foil plant in Malaysia."

Mitsui Kinzoku said the total investment includes about RM360 million for land acquisition, RM82 million for building construction, and RM3.69 billion for production equipment and other assets.

The investment will be funded through cash on hand, borrowings and other sources, the company said.

The new facility will progressively increase the company's MicroThin production capacity by two million square metres monthly by fiscal 2031, with a further two million square metres added by fiscal 2033.

For VSP copper foil, the plant will add 600 tonnes of monthly capacity in each of fiscal years 2031 and 2032, bringing the company's total capacity to 2,600 tonnes monthly.

The company said the acquired site could accommodate production capacity of up to 3,600 tonnes monthly.

It would also consider expanding combined VSP capacity across the new and existing sites to 5,000 tonnes monthly as the market grows.

The investment forms part of Mitsui Kinzoku's broader expansion strategy for its copper foil business, which is included in its engineered materials segment.

The company expects operating profit from the copper foil business to reach 3.2 times its fiscal 2025 level by fiscal 2030 and 5.5 times by fiscal 2033, supported by investments planned through fiscal 2030 and the latest Malaysian project.

The new facility is expected to contribute to profit growth from fiscal 2031 onwards.

The Malaysian expansion builds on the company's longstanding manufacturing presence in the country through Mitsui Copper Foil (Malaysia), which was established in 1989 and began commercial operations in 1991.

The subsidiary, based in Shah Alam, Selangor, manufactures high-precision copper foil for electronics, semiconductors and AI data centres.