China's Sigma and Zhongfu signed 200,000 mt/year liquid aluminium supply agreement

SHANGHAI, Dec 4 (SMM) – Sigma Group, the largest secondary aluminium producer in China, will build a 200,000 mt/year liquid aluminium factory in Gongxi, Henan province, to supply liquid aluminium to the processing plant of Zhongfu Industry.

The two companies signed the supply agreement on December 3. The factory, located in Yulian Industrial Park, is expected to be operational in June 2020.

This project is expected to lower the costs for aluminium deep and precision processing by 800-1,000 yuan/mt for Zhongfu.

There is 3 million mt of aluminium processing capacity in Gongyi, but less than 10% of which uses secondary aluminium. Sigma believes that die-casters will prefer liquid aluminium to ingots in the future.