China encourage integration management in electrolytic aluminum industry

Twelve departments of Chinese government united to issue “Guidance on boosting annexation and reorganization of enterprises in key industries”, in which they come up with targets on nine industries such as auto,steel,cement,shipping,electrolytic aluminum,tombarthite,electronic information,medicine and agriculture industrialization.

In terms of electrolytic aluminum industry,China encourage integration management in electrolytic aluminum industry.

The “Guidance” supports electrolytic aluminum enterprises enter into trans-regional ,trans-industrial and trans-ownership acquisitions and reorganizations.It encourages leading enterprises formed a partnership and boost upstream and downstream firms reorganized, incite “coal-electricity-aluminum”integrated operation and “mine-smelt-process-apply”integrated operation,and it aims to realize scale development and intensive development,cultivate 3 to 5 large business groups of strong international competitiveness.

“Guidance” is favorable for China’s large electrolytic aluminum enterprises.It is known that Chinalco has set about trans-industrial acquisitions.According to the renouncement of Ningxia Yinxing energy Co. in Jan.,Chinalco brought 23.66% shares of Ningxia electric power Group from Huadian Power Corporation Limited,after this ,Chinalco will be the actual controller of Ningxia electric power Group by owning 59% of its shares.They are signs of Chinalco’s business model of coal,electricity and aluminum integrated operation.