China Hongqiao to Shift More Aluminium Smelting to Yunnan Province
China’s top aluminium producer China Hongqiao Group plans to move more smelting capacity from its base in industrial Shandong to the hydropower-rich province of Yunnan. Hongqiao committed in 2019 to moving around 2 million tonnes of annual capacity from Shandong in eastern China to Yunnan’s Wenshan prefecture in the southwest to allow easier access to a cleaner power source than coal for the energy-intensive aluminium smelting process. The first phase of the Wenshan project started up last September, but now Hongqiao, conscious of China’s pledge to peak carbon emissions by 2030, aims to transfer another 1 million tonnes, this time to the neighbouring prefecture of Honghe
That would mean 3 million tonnes, almost half Hongqiao’s 6.46 million tonnes of licensed annual primary aluminium capacity, will be located in Yunnan, whose popularity with smelters in China is reshaping the aluminium landscape.