Henan Shenhuo Group said last week that it plans to ramp up the first 150 thousand metric tons of aluminium-smelting capacity at its project in Yunnan province at the end of the month.
According to a spokesperson from Henan Shenhuo Coal and Power, production would begin on New Year’s Eve, but he directed all other questions to Henan Shenhuo Group, who did not respond to an inquiry from Reuters.
“It will take around one month for product to come out after the switch-on,” explained a second unnamed official, noting that the plant would likely reach nameplate capacity by March.
Initially the project was to start in July, but adverse weather at the site translated to delays in construction. The site is part of the first 450 thousand metric tons per annum of smelting capacity Henan Shinhuo is moving from northern climes to Yunnan. Altogether the firm hopes to move 900 thousand metric tons per annum of capacity from its home province in central China to the southwestern province.
Yunnan province has emerged as a major destination for new aluminium-smelting capacity in recent months and years due to cheaper and cleaner hydropower in the province. Many of the country’s larger aluminium firms are taking advantage of abundant hydropower in the province and moving away from power generated via coal and the attendant regulations and scrutiny the use of such power increasingly attracts.