SHANGHAI, Jun. 8 (SMM) –
Chalco Decides to Suspend 380,000 Mt/Yr in Aluminum Capacity
Aluminum smelters in China are plagued by faltering downstream demand and excess capacity. Against this backdrop, the Aluminum Corporation of China (Chalco) issued a statement on June 5, saying it had decided on a "flexible" production strategy, which involves a temporary shutdown of production capacity of approximately 380,000 mt of aluminum, taking effect immediately.
Industry insiders say the switching on and off of aluminum production equipment costs an astounding RMB 200 million. As such, once equipment is switched on, aluminum smelters do not close capacity unless have to. Production cuts by Chalco, China’s aluminum giant, has highlighted sluggishness in the aluminum sector.
Century Aluminum Completes Acquisition of Sebree Smelter
Century Aluminum Company recently announced that its wholly-owned subsidiary has completed the transaction with Rio Tinto Alcan to acquire all of the assets of the Sebree aluminum smelter. The Sebree smelter, located in Henderson County, Kentucky, employs over 500 people and has an annual aluminum capacity of 205,000 mt.
Construction Commences on 50,000 Mt/Yr Aluminum Extrusion Project in Luxi County
Hunan Yinge Aluminum Extrusion broke ground on its 50,000 mt/yr aluminum extrusion project in Luxi County’s Wuxi Industrial Park on May 30. The project, based on a 3.5 hectare plot, represents RMB 98 million in total investment and promises to become the largest aluminum extrusion project in Xiangxi Autonomous Prefecture. Once operational eight months later, the project will generate over RMB 8 million in tax from RMB 900 million in revenues annually, employing over 300 people.