Dong-A Special Metal Expands Specialty Wire Production with CCAW

CCAW produced by Donga Special Metal

Dong-A Special Metal has successfully commenced mass production of Copper Clad Aluminium Wire (CCAW), a composite material combining aluminum and copper. The company is set to begin commercial production of titanium and nickel wire by October, marking its expansion into the specialty wire segment, beyond its traditional production of bars and ingots.

With the recent volatility in copper prices, companies worldwide are seeking alternative materials. Aluminum has emerged as a leading substitute due to its cost-effectiveness, although it falls short in electrical and thermal conductivity compared to copper, which impacts energy efficiency. Nonetheless, its price advantage has prompted industries to consider aluminum as a viable alternative to copper.

Dong-A Special Metal’s successful production of CCAW, which combines aluminum and copper, is garnering significant attention. According to the company, the newly developed CCAW conductors are over 50% lighter and cost roughly half as much as copper. When used in high-frequency applications, these wires can achieve over 90% of copper’s transmission capacity, making them a promising next-generation material for replacing copper.

Analysis of CCAW Bonding Layer by Electron Microscopy

CCAW Structural and Functional Superiority

CCAW is composed of interwoven layers of copper and aluminum. The bonding process between the two metals allows copper atoms to diffuse into the aluminum base and vice versa. This creates a strong, inseparable bond between the metals, akin to a welded joint. As a result, CCAW exhibits durability and reliability similar to copper while significantly reducing material costs.

Already, CCAW is being employed in various global industries, including coaxial cables, UTP wires, motors, and transformers. Its application continues to grow across sectors such as fan motors, televisions, refrigerators, and transformers, driven by its cost-saving potential, which has piqued the interest of numerous electronics manufacturers.

Future Expansion into Titanium and Nickel Wire

Dong-A Special Metal’s annual CCAW production capacity stands at approximately 1,000 tons, with products ranging from 2.6mm to 16mm in diameter, based on a 15% copper composition. Furthermore, the company plans to launch commercial production of titanium and nickel wire in October, with titanium products ranging from 14mm to 60mm, and nickel products from 2mm to 18mm. These materials are expected to serve critical industries such as aerospace, defense, shipbuilding, and chemical manufacturing.

A company representative stated, “We will be utilizing the same facilities for the production of titanium and nickel wires, including Invar, Inconel 625, and 718 alloys. Expansion efforts will begin next month, with full-scale commercial production commencing in October.”

He further added, “Our titanium and nickel wires will primarily supply materials to industries such as aerospace, defense, shipbuilding, and chemical processing.”

IPO Plans and Recent Investments

In parallel with its production expansions, Dong-A Special Metal has recently selected Korea Investment & Securities as the lead underwriter for its initial public offering (IPO). Since 2022, the company has secured significant financial backing, including investments from BNW Investment and other firms, with total raised capital reaching 34 billion won to date.