China’s Henan Shenhuo Group starts construction of an aluminium smelting project

China’s Henan Shenhuo Group announced that it started the construction of an aluminium smelting project investing around RMB 6.75 billion ($996.59 million). The company also said that its new project, located in the southwestern province of Yunnan, would be having an annual capacity of 900,000 tonnes.

The expected time to launch the project is in next two years. The first phase will have a capacity of smelting 451,100 tonnes of aluminium per annum.

The project is the latest case illustrating Yunnan’s increasing popularity as a location for aluminium smelters in China due to abundant hydropower resources, which is cheaper and cleaner, compared to coal fired power.

Henan Shenhuo Group Co., Ltd., together with its subsidiaries, produces aluminium and related products, such as electrolytic aluminium, aluminium foil, prebaked anode blocks, cast aluminium alloys, and ingots. The company also engages in coal mining and production; power generation; coke production; cotton yarn milling; and product processing businesses in China.

Weiqiao Aluminium & Power and secondary aluminium producer Sigma Group also agreed to construct 300,000 tonnes of molten secondary aluminium capacity in Zouping of Shandong province, a source told Shanghai Metals Market on Thursday May 9.