China Zhongwang Eyeing Rosy Automotive Aluminum Market

Published: May 24, 2016 10:59

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There is vast growth potential for aluminum applications in transportation sector.

SHANGHAI, May 24 (SMM) –There is vast growth potential for aluminum applications in transportation sector, and China ZhongWang Holdings, the country’s leading aluminum extrusion manufacturer, is sparing no efforts in tapping into this market.

“With China’s ongoing energy saving and emission cut drive, aluminum, thanks to its lightness, has become the preferred choice in transportation sector. There is still large room to grow for applications of the light metal in transportation sector in the future,” Chen Quanxun, President of the CNIA said in a recent form.

According to the Made in China 2025, a national plan, lightness will be the key point that needs technical breakthrough in automobile industry.

China’s automobile output will reach 36 million units by 2020, and new energy vehicles output will hit 2 million units, according to a report by Sinolink Securities. Assuming that 160 kg of aluminum alloy is used in one traditional automobile, versus 250 kg in new energy vehicle, aluminum alloy demand in automobile market alone is estimated at 6.2 million tonnes. Automotive aluminum alloy demand is expected to grow at a CAGR of 20%-25% during 2014-2020.

China Zhongwang has established technical cooperation with many Chinese automakers to jointly develop all-aluminum coaches. The company has also been producing all-aluminum auto body frame extrusions for BYD Auto, China’s top new energy vehicle manufacturer.

China Zhongwang’s Tianjin facility will produce aluminum alloy medium-thick plate that ranges from 6 mm to 300 mm, which could be used in automobiles, rail cars and special vehicles.

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