Sigma’s Chongqing Plant to Start Aluminium Melt Supply in 2011

Sigma Group, a large producer of secondary aluminium alloy headed in Taiwan, plans to start aluminium melt supply at Shanghai Sigma Metals Chongqing’s new plant which will enter commercial operation in the second half of 2011. Tony Huang, chairman and CEO of Sigma Group, told Japan Metal Bulletin that the firm already concluded an aluminium melt supply contract with Chinese large die casting maker and the die casting maker started construction of a new plant near Shanghai Sigma Metals Chongqing’s new factory.

Shanghai Sigma Metals Chongqing, Sigma Group’s productive subsidiary located in Chongqing, China, currently produces AD12.1 grade secondary aluminium alloy at 3,500 tonnes per month. The subsidiary keeps full operation since October 2009 thanks to the strong demand in China. Chongqing’s existent plant is under capacity expansion works to complete in mid December of 2009. Mr. Huang explained the output capacity would reach 7,000 tonnes per month and enter full operation immediately.

Shanghai Sigma Metals Chongqing will commence construction of a new plant in January 2010 with US$ 100 million investment. The new plant is scheduled to start commercial operation in the second half of 2011. The existent plant will stop operation after the new plant launches. The new plant’s output capacity will total 600,000 tonnes per year; 150,000 tonnes for AD12.1 melt, 150,000 tonnes for AD12.1 ingot and 300,000 tonnes for high purity aluminium-silicon master alloy.

In Chongqing, there are many plants of Chinese automakers, Japanese automakers, local die casting makers and automotive component makers. Secondary aluminium alloy is consumed at approximately 50,000 tonnes per month.