SHANGHAI Jun.15 (CBI China):On Jun.7, Chalco began construction on its Shanghai-based copper plates/strips project. With a total investment of RMB 1.09 billion, the project is expected to focus on high-end products for the electronic industry. The company plans to develop high-precision copper plates/strips to meet not only domestic demand, but also increase self-sufficiency for China market as a whole.
The capacity of the new plant will be 70 kt p.a. and will take two years to complete. Upon completion, Chalco Shanghai Copper production capacity of copper plates/strips will increase from 50 kt p.a. to 120 kt p.a.. The project is another strategic breakthrough for Chalco’s non-aluminum sector following the acquisition of Hubei Daye Nonferrous Metals and Luoyang Copper.
Downstream processing capacity has expanded rapidly recently in China due to a large number of high-end copper expansion projects. CBI is confident that the products from these high-end production lines will help substitute part of the existing import in the following several years, but domestic supply of high-end products will not likely exceed downstream demand.