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China Hongqiao to Shift 2 Million Tonne Aluminium Capacity to Yunnan Province to Cut Power Costs

Metal News - Published on Tue, 19 Nov 2019

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World’s biggest aluminium supplier China Hongqiao Group will move almost a third of its smelting capacity to Yunnan in southwest China from Shandong province, cutting its reliance on coal-fired power. Chairman Mr Zhang Bo told Reuters “Hongqiao plans to move 2 million tonnes of capacity in two phases to Wenshan prefecture, in the southeast of hydropower rich Yunnan province near the border with Vietnam. It’s mainly to adjust the energy structure of Hongqiao, with nearly one third of the production capacity using hydropower and clean energy in Yunnan. The cost is good. Yunnan government gives us some preferential electricity prices.”

The 1 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 time frame for the second phase will depend on how the first goes

There is no need to buy replacement capacity permits as overall group capacity will remain at 6.46 million tonnes.

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.

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Posted By : Rabi Wangkhem on Tue, 19 Nov 2019
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