Nanshan Aluminum (600219) announced this evening that the 10th meeting of the Tenth Board of Directors was held on July 21, 2021 to consider and pass the "proposal on the Construction of Automobile lightweight Aluminum Plate and Strip production Line". The total investment of the project is about 2 billion yuan, and the construction period is expected to be 18-30 months. After the completion of the project, the annual production capacity of lightweight aluminum plate and strip will be increased by 200000 tons.

The company said that in recent years, the automobile industry has ushered in an unprecedented era of great change, and the new energy vehicle industry has gradually sprung up. The European Union has proposed to achieve "zero emission" and stop production of all fuel vehicles in 2035, which will accelerate the promotion and application of new energy vehicles. At present, the global automobile industry is in the period of "second technological revolution" from traditional fuel to new energy applications, while the Chinese market is growing fastest in the global new energy vehicle field since 2017. According to IHS data, the demand for aluminum automobile plates across Asia in 2017 is about 130000 tons, while the Chinese market is 78000 tons; around 2025, the Asian market demand will rise to more than 1.3 million tons.

The primary factor restricting the development of new energy vehicles is mileage, which makes the demand for lightweight of new energy vehicles more urgent, which will further accelerate the application process of automobile aluminum sheet. The company's existing automobile plate production line project has been completed and put into production, with the rapid growth of product orders and the continuous increase in the number of customers. at present, it has passed the material certification of the world's major automobile mainframe factories, such as mainframe factory, Lurai, BMW, SAIC GM, FAW-Volkswagen, GAC NE, ideal, Hyundai, Nissan and so on.

According to the company's development strategy of creating "automobile lightweight aluminum plate leading enterprise" and the development, research and prediction of the market, the company believes that aluminum automobile plate is the main development direction of aluminum application in the future. in particular, the rapid promotion and application of new energy vehicles will lead to a rapid increase in automotive aluminum sheet demand, automotive plate market prospects are broad, decided to expand the production line, speed up the construction progress of the production line, and quickly achieve capacity expansion. After the completion of the project, it will further enhance the production capacity of high-end products, improve the product structure, ensure the company's first-mover advantage and increase its market share.

As the first batch automobile sheet supplier in China, Nanshan Aluminum Industry will gradually build a leading enterprise of automobile lightweight aluminum plate in the future, and further expand the production scale of superior automobile plate based on the existing production system. Provide full-model, full-size material supply to automobile enterprises.