Dong-A Special Metal Pioneers with CCAW Production Amid Market Shifts

Copper Clad Aluminium Wire (CCAW)

Dong-A Special Metal has marked a significant innovation in the metals industry by initiating production of Copper Clad Aluminium Wire (CCAW), responding strategically to the surging and fluctuating copper prices. This new venture aims to establish a robust presence beyond traditional metal forms like bar stock and ingots, focusing instead on specialized wire products.

Advancing with Copper and Aluminum Integration

The Korean-based company's success in producing CCAW—a bimetallic product that melds the lightness of aluminum with the conductivity of copper—is positioning it as a cost-effective alternative to pure copper wires. CCAW is over 50% lighter and costs about half as much as copper while achieving over 90% of copper's conductivity. This makes it suitable for high-frequency applications and a potential replacement for copper in global industries such as electronics, where it is used in fan motors, transformers, TVs, and refrigerators.

Particle Analysis

The shift comes at a time when many industries are seeking alternatives to expensive copper, with aluminum emerging as a viable substitute despite its lower electrical and thermal conductivity. Dong-A Special Metal move to produce CCAW is particularly significant as it provides a Korean-made source amidst high tariffs on Chinese imports imposed by the Trump administration, underlining the importance of diversifying supply sources.

Expanding Product Lines and Markets

Furthermore, Dong-A Special Metal is expanding its product range to include commercial production of titanium and nickel wires, set to begin this year. These products will be available in dimensions ranging from 14mm to 60mm for titanium and 2mm to 18mm for nickel, targeting specialized sectors such as aerospace, defense, shipbuilding, and chemicals. The company has also equipped itself to produce 1,000 tons of CCAW annually, ranging from 2.6mm to 16mm in diameter, with a copper content of 15%.

The company representative stated plans to utilize the same facilities for titanium and nickel alloy (Invar, Inconel 625, 718) wire products, intending to supply these critical materials to key industries involved in national defense and advanced technology applications.

Financial Moves and Future Directions

Dong-A Special Metal has recently chosen Korea Investment & Securities as the lead manager for its upcoming IPO, accelerating its growth strategy through funds raised from various investors, including BNW Investment, which has invested in Ecopro since 2022. The total investment secured so far is $23.48 million, setting a solid foundation for further expansion and innovation.