Delta Aluminium, China Steadily Increases Secondary Al Alloy Output

Delta Aluminium Industry, Chinese secondary aluminium alloy maker headed in Guangdong, increased its production to 7,000-8,000 tonnes per month in September. Daiki Aluminium Industry, Japanese largest secondary aluminium alloy maker, holds 20% shares in Delta Aluminium Industry. Delta mainly produces ADC12 grade and ADC 10 grade alloys at present while plans to start production of aluminium alloy casting material within this year.

Delta completed the second-phase capacity expansion at the end of May 2010 and doubled the output capacity to 8,000 tonnes per month. The firm aims to raise the operating rate fully and stably by the end of this year.

Daiki purchases 70-80% of Delta’s products to sell in Japanese and Southeast Asian markets. Daiki’s sales subsidiary in Guangdong presently sells Delta’s products at 500 tonnes per month to Chinese market while plans to increase the sales to 2,000 tonnes per month in 2-3 years. Chinese domestic demand for secondary aluminium alloy is expected to represent steady growth in a medium term along car sales increase.

Daiki explains Delta doesn’t have concrete plan of third phase capacity expansion and Daiki doesn’t intend to increase Delta’s capital fund at present. Delta started operation in January 2009. Daiki has given technical supports and sent 3 technical staffs to Delta.