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China Hongqiao to move 2 million tonnes of aluminium to Yunnan province

By Ramla Soni

The first phase of the project is expected to start in Q3 or Q4 2020

China Hongqiao Group, the world’s biggest aluminium supplier is to move almost a third of its smelting capacity to Yunnan province in south-west China from its current base of Shandong, cutting its reliance on coal-fired power.

Chairman Mr Zhang Bo told Reuters that Hongqiao plans to move 2 million tonnes of capacity in two phases to Wenshan prefecture, in the south-east Yunnan province near the border with Vietnam.

The million tonnes of smelting capacity in the first phase of the Yunnan project is expected to start in the third or fourth quarter of 2020. The timeframe for the second phase will depend on how the first goes.

Hongqiao will not cut any aluminium production this winter, Zhang Bo said, having already closed some capacity after floods this year.

There is no need to buy replacement capacity permits for the Yunnan project as overall group capacity will remain at 6.46 million tonnes, he added.

All of 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 group is mainly engaged in the production and sales of molten aluminium alloy, aluminium alloy ingots, aluminium alloy casting-rolling products and aluminium busbars.

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