China’s wind power boom intensifies Hanking’s drive to expand high-purity iron production capacity
- High-purity ductile casting iron is used to make components for wind turbines
- The Chinese company aims to increase production of the metal by 30 per cent on the back of strong demand for renewable energy
China Hanking Holdings said it plans to expand the output of high-purity iron, a raw material in wind-turbine components, in anticipation of strong demand from the mainland’s renewably energy industry.
The Hong Kong-listed miner aims to increase the production of high-purity ductile casting iron by more than 30 per cent to 800,000 tonnes this year, Tang Wenbin, vice-president and director of its Hanking Australia unit, said on Tuesday. The firm is also eyeing acquisitions to entrench its market dominance.
“Judging from the wind power development plan for the 2021-2025 period, the wind power sector will maintain a relatively rapid growth in the next decade,” said Tang. The group has benefited from China’s wind power sector and will strive to meet growing demand by stepping up its capacity, he added.
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The Chinese company, which holds a leading position in domestic iron ore production and has a gold mining business in Australia, entered the high-purity iron business in 2019 to supply materials to China’s downstream wind turbine makers.
Hanking produced 600,000 tonnes of high-purity iron in 2021, or about 65 per cent of its annual capacity. The firm is the largest industry player, accounting for over 50 per cent of China’s total output of the metal, according to company data. Its sales amounted to 2.49 billion yuan (US$380.5 million), or 80 per cent of the group revenue.
Hanking is looking to expand its capacity through acquisitions of other producers, company secretary Zhang Jing said.
