Zhongfu Industrial to close Henan aluminium capacity and relocate it in its Guangyuan plant for cost advantage

Rising prices of coal and winter production curbs are making aluminium producers in Northern China unprofitable and they are closing down capacities to transfer the same to south China.

Henan-based Zhongfu Industrial has decided to shut its subsidiary, Linfeng Aluminum & Power in Linzhou city of Henan as announced on Wednesday December 12.  Operations in Linfeng plant, which has an annual capacity of 250,000 tonnes of primary aluminium, was suspended from the end of October. The plant accounted for 30% of Zhongfu’s overall aluminium capacity.

Henan Zhongfu Industrial and Henan Linzhou Linfeng Aluminum & Power announced in November 7 that they would construct an environmentally-friendly aluminium project in Guangyuan city of Sichuan province. 

The project will have an annual capacity of 250,000 tonnes of aluminium, 200,000 tonnes of aluminium billets and 50,000 tonnes of cast-rolling sheets. 

Construction has already started in November and the plant is expected to start production in September 2019. Zhongfu Industrial would relocate the Henan plant capacity in the newly constructed aluminium plant in the Guangyuan city where operating costs are cheaper.