Nippon Kinzoku Shifts Al Production to Guangdong during Olympic

Nippon Kinzoku, Japanese major maker of aluminium additives used as deoxidizing agents for steel making, will make Guangdong Longda Aluminium Corp. into full operation in August. Guangdong Longda is Chinese joint venture to produce aluminium alloy 21% shared by Nippon Kinzoku. Baoding Longda Aluminium Industry, another Chinese JV 40% controlled by Nippon Kinzoku, will stop operation from 1 August to 20 September due to environmental regulation for Beijing Olympic. Production will be partially transferred to Guangdong. Guangdong’s output will increase by 4 times to 4,000 tonnes per month.Guangdong Longda started production in late April 2008. The current output is 1,000 tonnes per month, 60% of which is primary aluminium ingot and 40% secondary aluminium alloy, and the operating rate is 25%. The JV supplies aluminium alloy to Japanese automakers in the region including Guangzhou Honda Automobile.Baoding Longda keeps full operation with output at 3,000 tonnes per month, producing primary aluminium and secondary aluminium alloy. The JV supplies aluminium alloy to Toyota’s engine plant in Tianjin and Guangzhou Honda.Each JV’s monthly output is expected to become at 2,000 tonnes after Baoding Longda restarts production at the end of September. Production for Guangzhou Honda will be totally transferred to Guangdong Longda. Guangdong Longda started sample supply to Nissan’s plant in Huadu, China in May and plans to start commercial supply within 2008. The JV also aims to supply aluminium alloy to Guangzhou Toyota.