China Hongqiao Group already shifts 1.5 Mt of aluminium capacity to Yunnan; aims to move 2 Mt by 2023-end

According to a source on Wednesday, September 13, China Hongqiao Group has moved 1.5 million tonnes of aluminium smelting capacity to Yunnan, a region with abundant hydro power.

Going ahead, China Hingqiao Group aims to deploy 4 million tonnes of aluminium smelting capacity by the end of 2025 in Yunan to leverage the availability of renewable energy.

According to Ron Knapp, special adviser to the company, this capacity shift to Yunnan will enable China Hongqiao Group to curb carbon emissions by 30 per cent by 2023-end. Knapp told Reuters in an interview on the sidelines of Fastmarkets aluminium conference in Barcelona, "That's the first step to get us out of coal. We are committed to hit peak carbon by 2025."

China Hongqiao Group aims to shift 2 million tonnes of capacity to Yunnan from northern Shandong province by the end of 2023 and to move 4 million tonnes by the end of 2025. In 2022, the company produced 6 million tonnes of aluminium.

Knapp updated that the sixth potline of China Hongqiao Group’s new operations in Yunnan is almost finished. He also said hydropower availability is back to normal in Yunnan after recent disruptions due to lower-than-usual rainfall this year.

2 million tonnes of aluminium capacity have come online in Yunnan, including capacity restarts that were put on hold, said Knapp.