Enpack, a major Chinese supplier for metal packaging solutions, announced on December 23 that it signed a letter of intent on cooperation with the administration of Gaoyou Development Zone. According to this letter, Enpack will invest around RMB 3 billion to build a plant for manufacturing composite copper foil and aluminum foil used in Li-ion batteries that power new energy vehicles. The Gaoyou Development Zone is located in China’s Jiangsu Province.
Enpack has landed this manufacturing project in the Gaoyou Development Zone because the area has the necessary infrastructure and hosts an industry cluster related to Li-ion batteries. The new plant will support Enpack’s efforts to expand into the booming market for battery materials.
Established in 2006, Enpack develops and manufactures metal packaging solutions for disposable consumer goods. The company emphasizes that its packages are safe, environment-friendly, and easy to open. Its product portfolio covers food, beverages, and chemicals. The company was listed in Shenzhen Stock Exchange in 2017 and boasts to be a national-level high-tech enterprise.
In terms of financial performance, Enpack’s revenue for the first three quarters of 2022 grew by 8.01% year on year to reach RMB 1.441 billion. However, its net profit attributable to shareholders for the same period was actually negative. The company incurred a loss of RMB 7.9442 million. This result might be the reason why the company is pivoting to the field of Li-ion battery.
Enpack said it can leverage its vast resources and many years of experience in the field of metal packaging, especially in the aspects of procurement, process management, equipment management, production-related operations, etc. The new plant in the Gaoyou Development Zone will represent a secondary business and another source of revenue growth. Furthermore, the company stated that this project has been initiated after a thorough assessment of market demand, technological developments, and the company’s own operational status.
This article is a translation of a Chinese article posted by TrendForce. It contains information that is either sourced from other news outlets or accessible in the public domain. Some Chinese names are transcribed into English using Hanyu Pinyin.