Metals News
New Aluminum Processing Projects Begin Construction in Henan Province
smm insight
Mar 1,2010

SHANGHAI, Mar. 1 (SMM) -- Construction of two new privately-owned aluminum product processing projects in Gongyi City of Henan province began on February 22nd.  The two projects are Henan Mingtai Aluminum Group's aluminum deep processing project and Henan Wanda Aluminum Company's 150 kt/yr hot-rolled deep processing project.

Henan Mingtai Aluminum's deep processing project includes two cold rolling mills and two foil rolling mills, with output values expected to reach RMB 3.5 billion.  Total investment is RMB 1.2 billion, with profits of RMB 600 million expected after coming online.  Total investment in Henan Wanda Aluminum's 150 kt/yr hot-rolled deep processing project is RMB 1.5 billion, with output values of RMB 4 billion and profits of RMB 800 million expected once the project comes online.

SMM believes market players are prepared for rapid growth of domestic demand following the strong industry recovery in 2H 2009, and domestic downstream fabricators also begin to put new capacity into operation on a large scale.  A surging real estate sector resulted in strong growth in aluminum extrusion demand, with large scale new aluminum extrusion capacity beginning construction from mid-2009 onwards.  Aluminum plate and strip, which initially recovered slowly, is also showing signs of stronger growth following increased optimism toward a global economic recovery, and also presents an opportunity for domestic aluminum plate and strip producers to further expand capacity.

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