The leader of the Chinese aluminum industry is investing in a new project
One of China's leading manufacturers of products made of aluminum, the company «Jilin Liyuan Precision Manufacturing Co.», is going to implement in Xinbei, Liaoning new project. Focuses he will be on the production of parts for vehicles manufactured from an aluminum alloy. The company's investments will amount to 5 billion. Yuan, or 820 million. USD.
According to preliminary calculations, the new enterprise will produce aluminum alloy, sufficient to manufacture 1500 cars and 10 thousand. Tonnes of profiles of aluminum deep processing. Start of construction is planned for 2015, the final stage will be implemented until 2018.
The company's activities include the production and sale of aluminum profiles in the domestic market. Also part of the production is exported. This industrial aluminum profiles used in the production of vehicles. It also includes an alloy of aluminum for the manufacture of cars and containers, engines, radiators and parts of bodies.
Another Chinese company, which produces aluminum products and is the second most important leader in China, considering the possibility of joint activities with «RUSAL» corporation. Russian giant intends to cooperate with the Group of «Hongqiao» for the purpose of processing aluminum, suggesting to create a framework for the exchange of ideas and interaction. Today «Hongqiao» Group, located in northern China, is making a lot of effort to improve and transform its own business model. Another aim of the Group is sustainable development issues in the processing of aluminum. Possible cooperation with «Rusal» looks quite attractive for the Chinese manufacturer, taking into account the advanced technology and experience of the Russian company. In addition, the cooperation will enable the parties to enhance the inherent advantages of the individual.
Over the past six months the price of aluminum fell by 13%. Because Chinese manufacturers are trying to strengthen the position occupied by them. Construction and transport sector consumes over 50% of the total aluminum used in China. So the development of these industries will have great impact on domestic demand.
After a meeting with a delegation from the «Rusal» representatives of the Group «the Hongqiao» reported that they intend to strengthen ties in the direction «of aluminum and electricity integration» and «integration of processing and mining business.» These steps will help strengthen the position of China in the aluminum sector, thereby generating a high income and long-term value to shareholders.