Guangdong Longda Aluminium to Increase Capacity Utilization

Chinese major secondary aluminium alloy maker, Guangdong Longda Aluminium, in which Japanese major deoxidizing agent maker, Nippon Kinzoku has interest, will increase the production to monthly 3,000 tonnes by the end of the year, which represents around 40% higher than current operation. The president Du Yongli said to a reporter of Japan Metal Bulletin the firm keeps studying for second phase of the expansion, which was frozen since late 2008, depending on Chinese demand and market price.

The firm increases the production since the spring while the order receipt decreased from the beginning of the year. The firm, which produces around 20 alloys including ADC12 grade at the plant with monthly 4,000 tonnes of production capacity, reduced the production to monthly 1,400 tonnes from November to January. The firm recently increased the production to meet higher demand for automobile from the bottom at less than 40% of capacity utilization.

The firm planned to build new plant with around 50,000 tonnes of annual output capacity as the first expansion completed in June 2008. The firm tries to find the timing to start the project when Chinese alloy demand will expand in long term.

The firm completed mixed metal scrap screening yard with 5,000 square meters in the month. The firm starts to import low grade mixed metals from Europe, USA and Russia to improve the cost competitiveness while the firm imported high grade scrap from Europe and USA.