Nippon Kinzoku’s China Al Alloy Plants Enjoy Strong Demand

Tokyo based major deoxidizing agent maker, Nippon Kinzoku expects the Chinese secondary aluminium alloy making joint ventures keep high level production. Total production of Guangdong Longda Aluminium and Baoding Longda Aluminium Industry hit 9,000 tonnes in September under growing demand for automobile. Nippon Kinzoku will start foundation work for new plant in Yantai in early November while the construction start delayed from original plan in June.

Guangdong Longda Aluminium made 4,000 tonnes of metal in September, which represented more than 90% of the capacity utilization. The plant kept full capacity operation but the order receipt decreased by 1,000 tonnes in June due to strike at parts makers for Honda Motor. Guangdong Londga Aluminium’s production gets normalize since July after strike.

Baoding Longda Aluminium Industry made 5,000 tonnes of metal in September and keeps full capacity operation. The firm tries to meet growing demand for metal for die-casting and casting from existing users and new customers. The firm, however, cannot meet all demand due to limited output capacity.

Chinese automobile sales hit 13.14 million units in January-September, which was almost annual number in 2009. The sales hit 1.557 million units in September, which reached 1.5 million units for the first time in 5 months. The higher demand will support Nippon Kinzoku’s alloy operation in China.