Nippon Kinzoku Invests for Third Secondary Al Plant in Yantai, China

Nippon Kinzoku, Japanese major maker of deoxidizing agents, establishes a new secondary aluminium alloy plant in Yantai, Shandong Province, China. Yantai plant is wholly owned by Baoding Longda Aluminium Industry, Chinese joint venture, which 40% of share owned by Nippon Kinzoku. Yantai plant’s output capacity is scheduled at 50,000 tonnes per year, supplying secondary aluminium alloy ingot and aluminium melt. The plant will start the operation at the end of March 2011 at the earliest. The capital expenditure totals 180 million yuan (approximately 2.5 billion yen). General Motors’ Yantai plant will be one of the main customers.

Baoding Longda is 40% shared by Nippon Kinzoku, 33% by Lizhong Group and 22% by other 3 companies. Yantai plant is established as Baoding Longda’s 100% subsidiary with capital at 50 million yuan. The plant construction will start until the end of June 2010 on the site of 41,000 square meters. Yantai subsidiary meets the strong demand for secondary aluminium alloy in China where car market is expanding.

Baoding Longda has already agreed with a local die casting maker to supply aluminium melt and the firms are talking on the supply volume. Yantai plant will also decide the production volume of AC grade casting alloy and AD12.1 grade secondary aluminium alloy. The production capacity is planned to reach 35,000 tonnes per year at the first phase and 50,000 tonnes per year at the second phase.

For Nippon Kinzoku, Yantai plant is the third production base of secondary aluminium alloy in China. The existent affiliates are Guangdong Longda Aluminium and Baoding Longda.