Sichuan Meishan Aostar Aluminum resumes full production
Shanghai. May 8. INTERFAX-CHINA - Sichuan Meishan Aostar Aluminum Co.
Ltd. resumed normal production at its electrolytic aluminum facilities
recently in Sichuan Province, its Shenzhen-listed parent company
Guangdong Gold Horse Group said Tuesday.
Meishan Aostar shut down 84 electrolytic anodes early this year after
local power transmission infrastructure was damaged or shut down by
heavy snowstorms. The company started to resume primary aluminum
production on April 25, and has since brought all its production
capacity back online, according to the announcement.
"According to our survey, it is estimated that the company shut down
half of its annual capacity during the production suspension period. The
company's actual primary aluminum capacity sits at 280,000 tons per
annum, although its designed capacity was originally 250,000 tons per
annum," said Huang Fulong, and analyst with Guangzhou KCTH Trading Co.
Ltd, a market research company as well as a primary aluminum spot
trader.
Aluminum smelters in southwestern China's Guizhou, Sichuan, Yunnan and
Hunan provinces, as well as the northern province of Shanxi, suffered
severe power supply shortages in January and February this year due to
harsh weather and tight coal supplies. As a result, many were forced to
shut down substantial proportions of their production capacity.
Huang said most aluminum smelters could bring production back up to
normal levels by the end of June.
Beijing Antaike Information Co. Ltd., a nonferrous metals industry
consultant, told Interfax last week that a total of 1.73 million tons of
primary aluminum production capacity was shut down during the first
quarter.
Considering the production suspension, Antaike predicted that China's
primary aluminum output would reach 15.1 million tons this year, up 20.2
percent year-on-year. The resulting growth rate would be down 14
percentage points compared to last year.
In April 2007, Gold Horse acquired a 40 percent stake in Aostar Aluminum
from Shanxi Luneng Jinbei Aluminum Co. Ltd, a leading alumina producer,
making it the largest shareholder in Aostar Aluminum.
-IC
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