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China bans new electrolytic aluminium plants
Beijing, Aug 19: The Chinese government has applied the brakes on the feverish expansion of electrolytic aluminium production in the country by stopping approval of any projects to expand or construct electrolytic aluminium plants, a report said today.
Beijing, Aug 19: The Chinese government has applied the brakes on the feverish expansion of electrolytic aluminium production in the country by stopping approval of
any projects to expand or construct electrolytic aluminium plants, a report said today.
The government would not allow new electrolytic aluminium projects in any form to be started, an official from the state development and reform commission, which oversees
the country's economic restructuring, said.
Proposed foreign-funded projects would also undergo strict scrutiny according to due procedures, the official said.
Ma Kai, minister in-charge of the commission, said that bank loans and funds raised from the security market could not be used for the construction of electrolytic aluminium plants without government approval. China, already the top electrolytic aluminium producer in the world with an annual capacity of 5.1 million tonnes, is likely to double the capacity in a few years if the projects under construction or to be launched are taken into account. At that time, the output will far exceed market demand.
However, as the cost of electricity climbed and prices of raw materials soared, most of the electrolytic aluminium plants were expected to lose money in the next few years, according to the commission. The commission encourages regrouping of the existing electrolytic aluminium companies by means of to merger or acquisition so the sector can improve efficiency and international competitiveness, the report said.
Bureau Report
Proposed foreign-funded projects would also undergo strict scrutiny according to due procedures, the official said.
Ma Kai, minister in-charge of the commission, said that bank loans and funds raised from the security market could not be used for the construction of electrolytic aluminium plants without government approval. China, already the top electrolytic aluminium producer in the world with an annual capacity of 5.1 million tonnes, is likely to double the capacity in a few years if the projects under construction or to be launched are taken into account. At that time, the output will far exceed market demand.
However, as the cost of electricity climbed and prices of raw materials soared, most of the electrolytic aluminium plants were expected to lose money in the next few years, according to the commission. The commission encourages regrouping of the existing electrolytic aluminium companies by means of to merger or acquisition so the sector can improve efficiency and international competitiveness, the report said.
Bureau Report