Guangdong Longda Aluminium Reaches Full Capacity Operation

Chinese major secondary alloyed aluminium maker, Guangdong Longda Aluminium, in which Japanese major deoxidizing agent maker, Nippon Kinzoku has interest, increased the operation to full capacity level in September under improving demand. The production increased to monthly 4,000 tonnes, which increased by 45% in 2 months. Chinese higher automobile demand lifted the aluminium alloy operation.

Guangdong Longda Aluminium’s alloy production was only 2,200-2,300 tonnes by July. However, the production increased to 3,000 tonnes in August with higher order from transplants of Japanese parts makers, which provide the parts for transplants of Toyota Motor, Honda Motor and Nissan Motor. The production will reach full capacity level in September for the first time since the start of operation in July 2008.

Baoding Longda Aluminium Industry in Hebei, in which Nippon Kinzoku has also interest, keeps full capacity operation at 3,000-3,300 tonnes per month due to firm demand from transplant of Toyota. The higher automobile demand improves aluminium alloy demand in broad areas in China.

Guangdong Longda Aluminium, however, still shelves second phase of expansion, which was frozen since late 2008. The firm is still cautious for the future demand when the automobile demand in China could decrease in 2010 after the stimulus package to support repurchase of automobile by end of 2009. The firm tries to find the timing to add annual 50,000 tonnes of capacity.