Final hours! Save up to 55% OFF InvestingProCLAIM SALE

China Hongqiao kicks off aluminium production in Yunnan

Published 09/17/2020, 06:28 AM
Updated 09/17/2020, 06:30 AM
© Reuters.
USD/CNY
-
1378
-

BEIJING/SHANGHAI (Reuters) - The world's top private-sector aluminium producer China Hongqiao Group Ltd (HK:1378) has started first phase production at a greener aluminium plant in the southwestern province of Yunnan, cutting its reliance on coal-fired power, a Hongqiao affiliate said on Thursday.

Hongqiao’s smelting capacity is currently located in the city of Binzhou in Shandong and relies on coal-fired power for the electricity-intensive smelting process. The move to Yunnan allows it to swap coal for cleaner hydropower.

The project, led by Shandong Weiqiao Pioneering Group, is located at Wenshan prefecture and has an annual capacity of 2.03 million tonnes, the company said in a statement.

Hongqiao aims to move about one-third of its aluminium capacity out of Shandong province to the hydropower-rich Yunnan province amid China's environmental curbs.

The first phase of the project put into production on Thursday has capacity of one million tonnes per year, according to Hongqiao.

"Currently, the company does not have an exact timeline for the launch of phase two, but will complete by 2025", it told Reuters.

The whole project involves total investment at 40 billion yuan ($5.91 billion) and is expected to eventually bring in sales of 100 billion yuan per year, according to China's official Xinhua news agency.

Ge Honglin, head of the China Nonferrous Metals Industry Association, said the project would help enhance China's clean production level in the aluminium industry as it strives to make "world-class" high-end aluminium products.

China, the world's top aluminium producer, set a record monthly high production of 3.17 million tonnes in August.

($1 = 6.7664 Chinese yuan renminbi)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.