Chalco continues 4.1b yuan expansion
Updated at 6.58pm:
Aluminum Corporation of China (Chalco), the world's third-largest aluminium smelter, is pressing ahead with its 4.17 billion yuan (US$506 million) expansion plan despite problem of over supply in global market.
Chalco's executives announced aggressive expansion plan despite the company seeing a 46.8 per cent year-on-year drop in alumina prices and a 13.6 per cent fall in aluminium prices due to global over supply.
The refiner suffered a a 37.1 per cent decrease in last year's net profit to 1.58 billion yuan and a 9.1 per cent because of the sharp plunge in alumina and aluminum prices.
Guo Shengkun, president and chief executive of Chalco said about 70 per cent of the capital expenditure budget or about 2.91 billion yuan would be used to expand the production capacity of alumina by 580,000 tonnes.
The remainder would be used to expand aluminium production capacity by 56,000 tonnes and to solve the bottleneck of its existing production facilities.
Mr Guo said said Chalco targets to produce up to 5 million tonnes of alumina and 720,000 tonnes of aluminum this year.