?

Shandong Plans to Cultivate Two Aluminum Industry Groups with Sales Income Topping 100 billion yuan Within Three Years

Recently, Shandong Province unveiled “Nonferrous Industry Transition and Upgrading Plan”, which proposed that by 2017 it would cultivate 2 ultra large aluminum industry groups with sales income topping 100 billion yuan, aluminum capacity will be reduced to 9 million tonnes; before 2020 it will no longer add new capacity.

It has been learned that nonferrous metal industry is one of the traditional advantageous industries of Shandong Province. In 2013, Shandong Province’s nonferrous metal industry fulfilled 672.7 billion yuan of income from main business, accounting for 14.0% of national total, and ranking top nationwide.

But in 2013, Shandong Province’s aluminum capacity was 9.33 million tonnes, the capacity utilization rate was 72%. Overall speaking, its aluminum smelting energy consumption was better than national average, but some enterprises still have relatively high energy consumption. In 2013, the ratio between aluminum product and aluminum in Shandong was 1.31, which lags considerably behind those of advanced provinces. The ratio between copper products and electrolytic copper in Shandong Province is 0.62, which lags far behind those of advanced provinces.

To address existing problems in the aluminum industry, Shandong’s nonferrous industry will quicken the pace to cultivate large enterprise groups. By 2017, it plans to cultivate 2 ultra large aluminum industry groups with sales income topping 100 billion yuan, 5 large aluminum industry groups and copper industry groups with sales income topping 10 billion yuan. By 2020, it will cultivate 3 ultra large aluminum industry groups and copper industry groups with sales income topping 100 billion yuan, 8 large aluminum industry groups and copper industry groups with sales income topping 10 billion yuan. By 2017, the output ratio between aluminum products and aluminum will be increased from 1.31 in 2013 to 1.50; and to 1.80 by 2020. By 2017, the output ratio between copper product and electrolytic copper will be increased from 0.62 in 2013 to 1.00; and to 1.50 in 2020.

Focus efforts to support Xinfa Aluminum Industry, Weiqiao Aluminum Industry, and Nanshan Aluminum Industry to develop into large enterprise groups with complete industrial chain equipped with aluminum oxide, aluminum, aluminum processing materials etc. Nurture and develop industrial clusters, encourage the adoption of collective development mode spearheaded by copper aluminum smelting enterprises, develop deep processing industrial cluster for nonferrous metal products.

Establish raw material supply base and uniform purchase platform. Encourage enterprises to implement “walking out” strategy, revolving around copper ore, and aluminum ore resources which are in short supply in China, intensify efforts in external investment, adopt multiple methods including equity participation, acquisition, equity swap, participate in utilization and application of overseas mines. Meanwhile, strengthen relevant research and guidance, effectively avoid and prevent risks in overseas laws and employment. Support enterprises to carry out cooperation with international bauxite mine, copper concentrate raw material companies, sign long-term raw material trade contract, establish long-term stable raw material supply channels. Urge enterprises to jointly set up uniform purchase platform, in order to reduce purchase cost, and avoid market risks.