China’s Henan province will be the home of an aluminium test project operated by Baoshan Iron and Steel Co Ltd (Baosteel) later next year according to the local authorities at the planned plant’s location.
The Sanmenxia City Urban and Rural Integration Demonstration Zone said in a press release that the initial phase of the project would consist of a aluminium alloy casting and deep processing plant with a capacity of 300 thousand metric tons per annum. The first phase would come with a price tag of CNY6.14 billion (US$889.35 million) according to the statement.
Construction is expected to take nearly a year, with first production slated for next June. Overall the project is seeking sales revenue of CNY6.08 billion (US$880.68 million) per year with an ultimate nameplate capacity of 600 thousand metric tons per annum.
According to experts, China’s steel industry is ramping up efforts at diversification due to concerns over the future of demand growth from the downstream sector. Baosteel has already gone on record at pursuing efforts at breaking into the automotive aluminium game, and it has begun making inroads in the sector already, as affiliate Baosteel Metal recently purchased a portion of aluminium alloy maker Nanjing Yunhai Special Metals.
The aluminium project in question will be built as a partnership, with Henan Energy and Chemical Industry Group and the Sanmenxia municipal government stepping in as partners in the venture.