Hydro Aluminium Suzhou to Double Heat Exchanger Parts Output

Hydro Aluminium Suzhou doubles the output capacity of heat exchanger parts to annual 18,000 tonnes by mid-2012 by adding a rolling machine for 10 million euro. The firm tries to follow growing demand in China under the rapid economy growth.

The wholly owned subsidiary of Norsk Hydro started the operation in 2004 to supply precise extrusion products and tube for automobile and air conditioner. The firm makes annual 9,000 tonnes and supplies 80% of the products to China and 20% for offshore market including Malaysia, Thailand, Japan and South Korea. The firm has around 15% share in Chinese market.

The firm keeps full capacity operation under strong domestic demand. The firm decided the expansion when the firm cannot meet all of the potential order in the year. The firm starts the expansion work in early 2011 completing mid-2012. The production of the new capacity will reach full capacity in 2-3 years after the expansion.

Japanese and European automakers try to increase the local procurement of the parts when they expand the output level. Air conditioner makers are expected to shift copper based heat exchanger to aluminium base heat exchanger as industrial countries under the tight supply and higher price of copper ingot.

Hydro, which is the largest supplier of heat exchanger parts with 35% share in the world, has world 13 plants to make heat exchanger parts. The Suzhou plant tries to expand the Asian market share by the advantage of the stable supply ability and flexible service.