July 15 - China Jushi Co., Ltd. adopted a board resolution to authorize its wholly-owned subsidiary Jushi Group to build a production line with an annual output of 250 million meters of electronic fabric in the Tongxiang Economic Development Zone. The total investment exceeds RMB 2.4 billion, enabling the company to further expand its presence in the high-growth electronic fiberglass market.

Situated north of the Changshan River and east of National Highway 320 in the Tongxiang Economic Development Zone, the project differs from full-value-chain new production lines. The plan fully leverages the company's surplus electronic yarn resources and only adds weaving production lines to achieve internal raw material synergy, cost reduction and efficiency improvement. The construction period is 18 months. Funds will come from a combination of internal capital and external financing, and the proposal does not require review by the general meeting of shareholders.

According to financial projections, the pre-tax return on investment is expected to reach 13.27% upon full operation, generating steady incremental profits for the company. Electronic fabric is an indispensable base material for AI servers, high-end chip substrates and high-frequency copper-clad laminates. Driven by the continuous expansion of global computing infrastructure, high-end ultra-thin and low-dielectric electronic fabric remains in persistent short supply, sustaining strong industry momentum.

This marks China Jushi's second large-scale electronic fabric capacity expansion plan announced in 2026. Back in May, the company disclosed its Huai'an base project with an investment of RMB 4.431 billion, which will deliver an integrated facility with an annual capacity of 50,000 tons of electronic yarn and 320 million meters of electronic fabric. The move establishes a dual-site electronic fabric production layout covering Tongxiang and Huai'an.

The two major investments will substantially boost China Jushi's electronic fabric output and consolidate its global leadership in electronic fiberglass. The initiative aligns with the company's 15th Five-Year Plan strategic goal of becoming the world's top producer of electronic base fabrics. By capitalizing on economies of scale and industrial chain synergy, China Jushi will strengthen cost and technological moats to capture dual opportunities from domestic substitution and rising AI computing demand.

The company stated that the project constitutes a pivotal step to upgrade its product mix. China Jushi has long built its core business on roving and thermoplastic fiberglass. In recent years, it has ramped up investment in high-value-added electronic fiberglass and targeted high-end specialty electronic fabric to foster a second growth engine. Once commissioned, the new project will further enrich the local industrial cluster in Tongxiang, accelerate the company's transformation from conventional fiberglass manufacturing to high-end electronic advanced materials, and lift its overall profitability and global market influence.