Solus Advanced Materials will increase the capacity of its copper foil plant in Luxembourg to 15,000 metric tons from the current 12,000 tons by the end of this year to meet growing demand for 5G network equipment, the company said Monday.

The Luxembourg plant manufactures two types of high-end copper foils. Low-loss copper foils, which minimize signal losses, are used for 5G data centers and satellite communications, while high-frequency copper foils, which offer greater signal speed, are used for drones and a key self-driving technology called advanced driver assistance system.

“The expansion will allow Solus Advanced Materials to consolidate its position as the world’s No. 1 high-end copper foil maker, which currently controls 70 percent of the market,” a company official said.

According to Valuates Reports, the global market for 5G technology, which stood at $5.53 billion last year, is expected to surge to $667.9 billion by 2026, with compound annual growth rate of 122 percent.

After breaking away from Doosan Group on Dec. 14, the company changed its name to Solus Advanced Materials from Doosan Solus and appointed SkyLake Equity Partners Chairman Chin Dae-jae as its CEO. SkyLake, a private equity fund, is Solus Advanced Materials’ largest shareholder, having taken over 52.93 percent of shares in the firm from Doosan Corp. for 698 billion won ($624.4 million).

By Kim Byung-wook (kbw@heraldcorp.com)