An aluminium smelter in Central China announced today that it is offloading a quantity of already-shuttered lossmaking capacity to the open market.
Henan Shenhuo Coal & Power Co filed an announcement with the Shenzhen stock exchange notifying the market that it is shedding 60 thousand metric tons per annum of idled capacity. The move, done with the unanimous consent of its board of directors, was made as part of a wider set of asset-optimization measures.
The capacity resided at Yongcheng smelting plant, which was closed much earlier due to prohibitively high electricity and alumina costs, explained the firm. Henan Shenhuo retains a quantity of aluminium smelting capacity, but the exact number was not made clear in reporting on the subject.
Today’s announced capacity cut comes in addition to 207 thousand metric tons ordered shuttered by the provincial government earlier this month. Local media indicates that the capacity was subsequently assigned to Inner Mongolia Chuangyuan Metal Co.
Based in Yongcheng, Henan Shenhuo principally mines and processes coal. The firm also produces and distributes a limited amount of electricity in the area as well. The firm suspended operations briefly earlier this month at Xinzhuang coal mine in order to improve safety conditions at the site.