Sigma Group Hurries to Secure Enough Secondary Aluminium Materials

Sigma Group, the world largest producer of secondary aluminium alloy headed in Taiwan, is facing to material shortage. Tony Huang, chairman and CEO of Sigma Group, accepted a telephone interview by Japan Metal Bulletin on January 8th and explained Sigma Group’s plants cannot meet strong orders from Chinese customers due to low generation of aluminium scrap. Sigma Group is hurrying to secure enough materials including a large-lot order for Russian secondary aluminium ingot, AK5M2.

Chinese secondary aluminium alloy makers procure aluminium scrap mainly from the USA. In the USA, aluminium scrap generation maintains very low in response to stagnant economy. On the other hand, Sigma Group’s plants are enjoying the order increase from die casting makers and other customers in China where Shanghai Expo is scheduled to start in May 2010.

Sigma Group is trying to increase material procurement from Europe and Middle East. Mr. Huang explained Sigma Group’s plants needed to purchase aluminium scrap even from Chinese local dealers this month. The group also concluded a large-lot order for AK5M2, a high-grade material, though the firm hadn’t used AK5M2 for recent years. Mr. Huang said Sigma Group would be able to secure enough materials and meet the order increase in March 2010.

Production at Shanghai Sigma Metals, located in Shanghai, is expected at 23,000 tonnes in January, 14,000 tonnes for export and 7,000 tonnes for Japan. Production at Shanghai Sigma Metals Chongqing, located in Chongqing, is estimated at 3,500 tonnes in January. Chongqing plant’s output capacity was expanded to 7,000 tonnes per month by introduction of a new line in December 2009. The plant will reach full operation in February-March 2010. Production at Zhangzhou Sigma Metals in Fujian is expected at 6,000 tonnes in January. Production in Kaohsiung, Taiwan is estimated at 4,500 tonnes.