Shanghai Sigma Targets 2.4 Million T Al Alloy Making Capacity in 5 Years

Chinese largest secondary alloyed aluminium maker, Shanghai Sigma Metals expands the group’s Chinese production capacity to 4 times at annual 2.4 million tonnes in 5 years. The firm already started the expansion at Shanghai Sigma Metals to increase the capacity by 50% to annual 450,000 tonnes as a part of the expansion. The firm tries to expand the business in growing Chinese market.

The chairman Tony Huang said to a reporter of Japan Metal Bulletin the firm launched new 5-year plan, under which the firm builds 8-10 new plants in China. The firm builds mid-sized plants to cover large Chinese market.

Sigma group’s Chinese production capacity is total 600,000 tonnes per year at the 3 plants in Shanghai, Zhangzhou and Chongqing. The firm estimates the group’s market share is less than 10% in China. With the aggressive expansion, the firm tries to expand the market share to 25-30% in 5 years.

The firm will start construction work in 2-3 months to build new plants in Changchun and Rizhao for operation start in July 2012. The firm also talks with the users of automakers for potential new plants.

The largest production base of Shanghai Sigma Metals started construction of new furnace in June. The firm replaces all old 6 furnaces with 55 tonnes each with new furnaces with 100 tonnes each. The firm keeps monthly 20,000 tonnes production during the step by step renewal work through early 2013.