Topro Technology Plans Over 1.4 Billion Yuan M&A of Overseas Copper Foil Company, Annual Production Capacity to Exceed 190,000 Tons

Luxembourg Copper Foil is one of the leading global enterprises in high-end IT copper foil. Its headquarters and main production base are located in Luxembourg, Europe, with a current copper foil production capacity of 16,800 tons per year.

Image/Defu Technology

On the evening of July 29, Derfo Technology (301511) announced that the company signed a "Equity Purchase Agreement" with Volta Energy Solutions S.àr.l. (the seller) on July 29, 2025. Derfo Technology intends to acquire 100% equity of Luxembourg Copper Foil under the seller. The 100% enterprise value of the target company is 215 million euros (approximately 1.785 billion RMB). After deducting the adjustment items agreed upon by both parties, the calculated acquisition price for 100% equity of the target company is 174 million euros (approximately 1.445 billion RMB).

In addition, Defu Technology plans to establish a wholly-owned subsidiary, Defu Luxembourg, in Luxembourg and transfer all rights and obligations under the Equity Purchase Agreement from Defu Technology to Defu Luxembourg.

According to the information, Luxembourg Copper Foil was established in 1960 and has a long history of operation. It is mainly engaged in the research and development, production, and sales of high-end IT copper foil used in electronic circuits. Its core products include HVLP (High Very Low Profile Copper Foil) and DTH (Carrier Copper Foil). The end applications cover data centers such as AI servers, 5G base stations, mobile terminals, and more, offering broad growth potential.

Luxembourg Copper Foil is one of the global leading enterprises in high-end IT copper foil and the only non-Japanese leading manufacturer with independent mastery of core technologies and mass production capabilities for high-end IT copper foil. It holds a leading market share. In 2024, the combined revenue proportion of its HVLP (High Voltage Low Profile) and DTH (Carrier Copper Foil) products accounted for approximately 53%. The company maintains long-term and stable cooperative relationships with top global copper-clad laminate and PCB enterprises. Its HVLP 3/4/5 and DTH products have been mass-produced and applied in products of internationally leading manufacturers.

The headquarters and main production base of Luxembourg Copper Foil are located in Luxembourg, Europe. The current copper foil production capacity is 16,800 tons per year. Additionally, slitting centers are established in Zhangjiagang, China, and Canada, while sales centers are located in Hong Kong, China, South Korea, and the United States.

Defu Technology has been deeply engaged in the electrolytic copper foil industry for nearly 40 years and is one of the longest-established domestic electrolytic copper foil enterprises in China. The company has established stable cooperative relationships with leading downstream lithium battery manufacturers such as CATL, ATL, Gotion High-tech, Sunwoda, BYD, CALB, and Ganfeng Lithium, and is actively expanding its strategic overseas customer base, including LG Energy Solution and Volkswagen Power Co in Germany.

In recent years, with the rapid growth in demand for AI servers, 5G communications, and other areas, the demand for high-end IT copper foil such as HVLP and DTH has been continuously increasing. Despite the large market size of the domestic electronic circuit copper foil industry, high-end IT copper foil products have long been monopolized by a few overseas companies, resulting in a significant trade deficit concentrated in high-end products. This situation is particularly detrimental to the security of the domestic industrial chain in the current context of international instability and escalating trade conflicts. This transaction holds significant strategic importance for addressing the long-standing "bottleneck" issue of key upstream materials in the domestic electronic industry chain, breaking import monopolies, and ensuring the security of supply within the domestic industrial chain.

This transaction is an industry merger and acquisition. Defu Technology, as a leading domestic company in the electrolytic copper foil industry, has always regarded the development of high-end IT copper foil products such as HVLP and DTH as a long-term development strategy, investing a large amount of resources in research, development, and marketing, and has achieved certain results. In 2024, the company has completed mass production of multiple products in the HVLP series, and HVLP5 is currently in the research and development stage.

After the completion of this transaction, DeFu Technology will become a global leader in high-end IT copper foil. By fully leveraging the resource advantages of both parties to create synergistic effects, it can accelerate the integration of technological resources and quickly expand into emerging markets by relying on the target company's brand influence and product strengths. Additionally, it will significantly enhance the target company's profitability by leveraging the listed company's scale advantages, supply chain capabilities, and cost control technologies.

Battery Network also noted that as of the end of 2024, DFD Technology has built a production capacity of 150,000 tons per year. In 2025, the company will release an additional 25,000 tons per year, and it is expected that by the end of 2025, the company will have a built capacity of 175,000 tons per year. With this acquisition of Luxembourg Copper Foil, DFD Technology's total copper foil production capacity will increase to 191,000 tons per year.