Henan Shenhuo Announces Relocation of 450 Kt of Aluminium Smelting Capacity to Yunnan

Yunnan province

Seen by many as a continuing testament to Yunnan province’s growing attractiveness to the country’s aluminium smelters, Henan Shenhuo Coal & Power Co will soon be transferring almost half a million metric tons of smelting capacity to the province.

Per a notice released by the Yunnan Industry and Information Technology Commission, the firm plans to relocate 451,100 metric tons of aluminium smelting capacity to the province in China’s southwest, likely in a bid to take advantage of the province’s significant hydropower resources. The company said the move was also prompted due to difficulties in getting a plant with a similar capacity in Xinjiang off the ground.

The transfer will be housed by facilities run by Yunnan Shenhuo Aluminium Co, which is a unit of Henan Shenhuo Coal & Power. It is the first phase of a two-part transfer of a total of 900 thousand metric tons per annum from Henan. The plan’s ultimate result is an integrated hydropower and aluminium smelting operation, with construction on the project to commence in just under two months.

The new capacity will replace 510 thousand metric tons of coal-fired aluminium smelting capacity closed down at three plants in Henan. Of the three, 60 thousand metric tons per annum comes from a plant shuttered in 2010 and razed last year, while another 210 thousand metric tons per annum arises from a plant closed last month, which is to be leveled by the end of this year.

Yunnan has become a popular destination for aluminium capacity due to its significant hydropower capacity and a fist full of spare smelting capacity to give. In addition, the province was not subject to the mandatory winter smelting cuts imposed upon producers in Hebei, Shanxi, Shandong, and Henan earlier this year. Sichuan Qiya has already packed up and moved 350 thousand metric tons per year to the province.



2 Comments

  • Mathew says:

    Is the hydro electricity being wheeled from Yunan province? Or are they physically rebuilding 450 kt/yr aluminium smelter in Yunan province? Rebuilding is a caped intensive project.

    • Staff says:

      The reporting indicates that they will be building the capacity from scratch in Yunnan.

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