Solus Advanced Materials to Begin Full-Scale Expansion of Copper Foil Shipments in Q2

Solus Advanced Materials announced on March 30 that it expects profitability to visibly improve starting in the second quarter of this year, as copper foil shipments are set to expand in earnest.

The Solus Advanced Materials plant in Hungary is projected to supply an average of over 1,000 tons per month in the second quarter, exceeding the planned supply due to increased requests from European and North American customers. In the second half of the year, monthly supply is expected to double to over 2,000 tons per month.

In particular, from April, mass production and supply of high-end products for new projects of existing European battery companies will begin. Solus Advanced Materials is the sole supplier for this project, and as these are high value-added products, they are expected to make a significant contribution to improving profitability.

In the second quarter, the effects of economies of scale from increased volume will be fully reflected, and a turnaround to positive earnings before interest, taxes, depreciation, and amortization (EBITDA) is anticipated. EBITDA, which represents profit before interest, taxes, and depreciation, is a key indicator of a company’s cash-generating ability.

Last month, the European Union (EU) announced the enactment of the Industrial Acceleration Act (IAA), further fueling demand for battery material companies with a local production base. In response, the company is upgrading its supply system to align with changes in the European policy environment.

A Solus Advanced Materials representative stated, "The effect of expanded copper foil volume will be fully reflected in our performance starting from the second quarter," adding, "We will establish a stable profit generation base by improving our cost structure through increased utilization rates and a focus on high-margin products."

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