China Yimei Group Plans 600,000 Ton Aluminum Smelter - Association

BEIJING, Apr 18, 2012 (Dow Jones) -- An aluminum subsidiary of central China's Yimei Group plans to build a 600,000 metric ton aluminum smelter and processing plant in Henan province's Sanmenxia city, a report on the state-backed China Nonferrous Metals Industry Association said Thursday.

The company, Yimei Group Henan Tongren Aluminum Industry Co. Ltd., plans to invest CNY10 billion ($1.6 billion) in the first phase of the project, which may take two-and-a-half years to complete, the report said.

The company intends to substitute certain imported products to meet demand from the aerospace and defense industries, the report said.

While Beijing has sought curbs on new aluminum output capacity, Yimei Group executives are positioning the project as a "restructuring, consolidation and upgrading." They told association officials and industry experts at a meeting last weekend that the company is working with the provincial State-Owned Assets Supervision and Administration Commission of the State Council, or SASAC, to ensure the project's progress.