China's Runfeng to Start up 150,000 mt/yr Aluminium Plant 2012

Hong Kong, June 17 -- China's Runfeng Aluminium Foil Company expects to complete construction of its 150,000 mt/year aluminium foil plant at Qingdao city in Shandong province by 2012, the company said on Tuesday.

    "We have just begun plant construction," a company source said, adding that the first phase comprising a 50,000 mt/year production line is expected to be completed by 2010. The remaining two phases, each comprising the construction of a 50,000 mt/year production line, is expected to be completed by 2011 and 2012 respectively, the source added.

    A total of Yuan 1 billion ($146 million) will be invested in the new aluminium foil plant, which is expected to generate total annual sales revenue of Yuan 5 billion, with annual profit estimated at Yuan 800 million or more.

    "Our future aluminium foil output will be for both sales within mainland China and exports," the source said, adding that the company will mainly produce high-precision aluminium foil.

    The Chinese government increased the export tax rebate for aluminium foil to 15% starting from June 1, from 13% previously, in a bid to improve domestic producers' cash flow, which is in line with the state's policy of encouraging production and exports of value-added aluminium products.

    (Source: Platts)