Shanghai-based Regal Metal is planning to invest $74mn to build a recycled aluminum plant in China’s Shanxi province, backed by the local government.
According to media reports, the plant will be constructed in two phases. In the first phase, to be completed in April 2021, it will produce 100,000mt of secondary aluminum per year and will increase its capacity to 300,000mt per year over the next two years.
Using aluminum scrap, the facility will manufacture aluminum alloy ingots, magnesium alloy ingots used, and other semi-finished goods, which will be supplied to the growing automotive sector in China.
China’s primary aluminum output in August defied global trends and rose by 6.5pc to 3.1mn mt, compared to 2.9mn mt in the same period last year.