Liton Technology, a Taiwan-based maker of formed aluminum foil used to make aluminum electrolytic capacitors, will expand the production capacity at its factory in Sichuan Province, western China, according to industry sources in Taiwan.

The factory has an existing monthly production capacity of 450,000 square meters of low-voltage formed aluminum foil, the sources indicated. Liton will gradually set up 36-54 production lines mainly for medium- to high-voltage formed aluminum foil, with related monthly capacity to reach up to 310,000 square meters, the sources pointed out.

Medium- to high-voltage formed aluminum foil takes more time in production and is more profitable than low-voltage foil. Liton has been developing medium- to high-voltage formed aluminum foil with higher capacitance and a longer service life. In addition, Liton produces etched foil, a material used to make formed aluminum foil, to meet 20-30% of own demand and may expand production capacity of the material at the factory.

With uncertainty of receiving orders in December, Liton is relatively pessimistic about its business operation in the fourth quarter of 2011 but holds optimistic business outlook for the first quarter of 2012, the sources pointed out.