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proprietary copper recycling and cleaning technology and process. The recycling production process involves the fire refining of bulk recycled copper into high purity, low-oxygen content copper products, which is generally more cost effective for our customers than products manufactured from newly mined copper. In addition, the Company is capable of producing copper replacement products at 99.97% purity, which exceeds government and industry standards for pure copper, and is suitable for applications including power transmission, electronics and infrastructure.
We believe that our refined copper and CCA wire products address the needs of rapidly growing markets, and afford us a significant opportunity to increase our sales in the future. As of December 31, 2011, our scrap copper refinery capacity was approximately 85,000 tons per annum. Additionally, in the fourth quarter of 2010, we broke ground on our second copper recycling facility, and we expect to complete construction and installation of two new smelters, as well as the adjacent water and heat recycling systems and dust collection and filtration system in the first half of 2012. Once this facility comes on line, our annual refined copper production capacity will increase to 135,000 tons. We believe that our experienced management team will continue to leverage our leading technologies and increase capacity to manufacture, produce, market and distribute cost-effective, high quality refined copper and superfine copper and CCA wire products. If worldwide demand for alternatives to pure copper wire grows as we anticipated, and we continue to innovate and improve our processes, we believe we will be well positioned to compete in the copper consumption and copper wire market on a global scale.
Lihua sells its products primarily in China, either through distributors or directly to users, including distributors in the wire and cable industries and manufacturers in the consumer electronics, white goods, automotive, utility, telecommunications and specialty cable industries.
Lihua's corporate and manufacturing headquarters are located in the heart of China's copper industry in Danyang, Jiangsu Province. To serve its diverse base of approximately 300 customers, Lihua has representatives in cities throughout China.
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