Delta Aluminium to Start Capacity Doubling Work in September

Guangdong based Chinese major secondary alloyed aluminium maker, Delta Aluminium Industry, in which Daiki Aluminium Industry has 20% interest, starts second phase expansion in September. The firm doubles the production capacity to annual 100,000 tonnes by the end of the year. The firm expects the demand will expand in China while the firm tries to increase the export mainly to Japan.

The firm started the operation at the plant in Southern China largest industry park in January. The firm has 2 melting furnaces with 30 tonnes of capacity and a holding furnace with 25 tonnes of capacity. The firm keeps monthly 3,000 tonnes of production since the start of the operation and uses mixed scrap mainly from USA.

The domestic sales represented 70% of the total sales in January-June while the export was mainly to Daiki Aluminium in Japan along with the sales for Southeast Asian countries. The firm recently increases the export to Japan and the export represented around 50% of the total sales in July.

The firm expects Chinese demand will keep growing in the year when the automobile sales keeps firm. The firm expects secondary alloyed aluminium price would keep firm due to worldwide tight supply for aluminium scrap.