Alcha Aluminum to build 250000 tonnes aluminum project

Interfax China reported that Jiangsu Alcha Aluminum Company Limited plans to build a 250,000 tonne aluminum project in the Baotou National Rare Earth Hi Tech Industrial Development Zone in China's Inner Mongolia Autonomous Region.

Shenzhen Stock Exchange listed Alcha Aluminum will fund the project's construction through a private issuance of 120 million shares priced at least CNY 12.69 each to a maximum of 10 investors.

Once construction begins, the casting and rolling production lines are expected to be completed within 12 months while the whole project will be finished within 18 months. It has a designed annual production capacity of 100,000 tonnes for aluminum and aluminum alloy ingot, 100,000 tonnes for aluminum strip and 50,000 tonnes for aluminum foil.

Aluminum strip produced at the site will be shipped to the company's branch in Changshu City, Jiangsu Province for the first 2 years while aluminum foil will be used to supply the air conditioning industry in northern China.

Alcha Aluminum forecast China's aluminum sheet and strip consumption to reach 6.50 million tonnes annually by 2015. Aluminum foil consumption will total two million tonnes per annum.

Alcha Aluminum currently has an annual production capacity of 150,000 tons. Its controlling shareholder is privately owned Changshu Aluminum Company Limited.