Nippon Kinzoku to Expand Secondary Al Alloy Output in China

Hebei based secondary alloyed aluminium maker, Baoding Longda Aluminium Industry and Guangdong based secondary alloyed aluminum maker, Guangdong Longda Aluminium, both of which deoxidizing agent maker, Nippon Kinzoku has interests in, plan to expand the annual production and sales to 45,000 tonnes each in 2010. Nippon Kinzoku studies new plant with 50,000 tonnes of annual output capacity starting as early as March 2011.

The sales volume increased by 16.7% to 35,000 tonnes for Baoding Longda Aluminium Industry and increased to more than double at 25,000 tonnes for Guangdong Longda Aluminium in 2009 from 2008. The makers reached full capacity operations in late 2009. The planned production in 2010 represents 80% increase for Guangdong Longda Aluminium and 28.5% for Baoding Longda Aluminium Industry.

The both makers posted record profit for 2009 while they rejected to disclose. Baoding Longda Aluminium Industry increased the gross profit to around 1.7 times from 2008 with slight lower sales. Guangdong Longda Aluminium increased the sales to around 1.6 times and the gross profit to around 2.6 times. They plan to secure same level of profit in 2010 as 2009.

Baoding Longda Aluminium Industry expands the production through an additional furnace and expansion of coal gas supply capacity by May 2010. Guangdong Longda Aluminium adds a new line with 20,000-30,000 tonnes per year of output capacity in second half of 2010.

Nippon Kinzoku tries to select a potential site for Chinese third plant to serve automobile industry. Baoding Longda Aluminium Industry will control the new plant as a subsidiary to make alloy and AD12.1 grade products.