China Hongqiao’s aluminium alloy production in H1 declined by 4.1pc to 2.74mn mt from the prior year due to the relocation of some of the company’s smelting capacity to southwest China. The output of processed aluminium alloy products remained unchanged at 301,000 mt during the same period, the aluminium manufacturer said.
For H2, China Hongqiao has forecast strong demand for aluminium in the domestic market. The industry will face challenges as well as opportunities in the coming months, stated the company’s earnings release.
In H1, the company’s revenue declined by 3.6pc to CNY39.94bn ($5.78bn) from CNY41.43bn the prior year period. However, net profits rose by 14.3pc to CNY2.83bn.
China Hongqiao is among the world’s biggest aluminium producer with approximately 6.5mn mt annual capacity. In 2017, China Hongqiao was asked to close down significant capacity in Shandong province and transfer it to Yunnan province. The company has expedited the construction of the 2mn mt Yunnan Green Aluminum Innovation Industrial Park project which will be fueled by hydropower. It is also expanding its overseas business by steadily promoting Phase 2 of its 1mn mt alumina project in Indonesia and accelerating Bauxite business in Guinea, Africa.
($1=CNY6.9)