Growing From A Big Aluminum Province To A Strong Aluminum Province Henan Has Again Set Sail For Its Aluminum Industry Transformation



Growing From A Big Aluminum Province To A Strong Aluminum Province Henan Has Again Set Sail For Its Aluminum Industry Transformation

With the deepening of supply-side structural reform in recent years, Henan, a province that used to be an important aluminum area, is going through some changes silently --- it performed the historical transformation from aluminum ingot manufacturing to aluminum product manufacturing, from primary processing to fine and deep processing, from low-end products to high-end products.

In order to better implement the three-year plan of Tough Fight Against Pollution in Henan, accelerate green transformation of aluminum industry and make quality and efficiency improvement, promote “Second Startup”, bring about high-quality development and well solve problems during transformation like environmental stressfulness, too many primary products, low technology level and less competence etc.,

Henan recently has printed and distributed Action Plan of Aluminum Industry Transformation and Development (2018~2020) (referred to as Plan). The Plan strictly follows the transformation direction of “volume reduction, chain extension, quality improvement”; it focuses on how to transform the industry into a green, high-end, cluster and top-quality one; it promotes the transformation and upgrading on the basis of technology innovation, organization innovation and policy innovation. Henan province is working hard to make below achievements by 2020: stable annual capacity of electrolytic aluminum of 2.5 million tons, stable annual capacity of aluminum processing of over 12 million tons, added value of per-ton advantageous product of over RMB 10000, having cultivated 5 aluminum processing enterprises with 10-billion-yuan-level market value, having cultivated 2-3 industrial clusters with 100-billion-yuan-level market value. Finally, the goal of Henan Province is to build itself into an internationally strong aluminum province.

The Plan takes the basis of current aluminum industry circumstance and local development conditions to introduce main development approaches from five perspectives, thus promoting local aluminum industry to grow into an excellent and strong one in a realistic way.

Move 1, to optimize a batch of products and brands. Centering on specialized and professionalized development, the Plan supports key aluminum processing enterprises in making the right product positioning in a scientific way; to carry out some fine and deep processing projects as driving force; to cultivate special product and competitive product using the concept of “one policy for one enterprise”, for purpose of forging brands that are internationally competent. The plan aims to rely on backbone aluminum processing enterprises to greatly boost the extension of processing industry to high-strength and high-tenacity aluminum and high-end deep aluminum processing; to develop high value-added products that are used for aerospace, transportation and electronic information and so on; to do our best to obtain relative quality certificates in auto-oriented aluminum products, marine products and military products; to accelerate the measure of “saving copper by using aluminum, replacing steel by using aluminum, replacing wood by using aluminum, replacing plastics by using aluminum” and develop end-customer products including building template, building enclose plate, aluminum furniture, can-oriented material, packaging aluminum foil and aluminum guide rod (cable); to make up for extrusion short plate in transportation and building field by industrial transfer and chain extension. To emphasize demand orientation and guide key enterprises to enter into “one-to-one” and “one-to-multiple” long-term precise cooperation with big aluminum-consuming enterprises including auto and auto part enterprise, electronics enterprise and big home appliances enterprise. We take this chance to co-construct national-level and provincial-level demonstration platform of production and application. For application of the first batch of eligible key aluminum alloy new materials, we are going to disburden them of the insurance fee. We are forging the pioneering area of automobile weight reduction and production base for supporting military products.

Move 2 is to optimize a batch of enterprises and clusters; to give full play to the advantages in market, resources and industrial base and further enhance leading enterprises and industrial clusters; to support Mingtai Aluminum, Wanda Aluminum, Xingfa Aluminum and Hengmei Aluminum in growing into leading enterprises centering on high-end production; to vigorously introduce domestic and global famous aluminum processing enterprises and integrate resources for high-end aluminum processing projects, thus facilitating their development into leading enterprises with driving force; to encourage Yulian Group, Yichuan Power Grip and Shenhuo Group to exert advantages in industrial base so as to make contributions to fine and deep processing and integrated development; to encourage domestic aluminum processing enterprises or electrolytic aluminum enterprises to establish high-end aluminum processing process and to support capacity exchange to advantageous areas outside the province for the establishment of electrolytic aluminum supplying base. Through this way, industrial integration combining inside-province high-end processing and outside-province front-end supplying will be completed driven by capital; to rely on aluminum processing industrial clusters such as Luoyang, Gongyi and Changge to actively promote the experience of attracting business by business. To introduce small-and-medium deep aluminum processing enterprises to backbone enterprises regions. To develop recycled aluminum in waste aluminum resource concentration area and establish a batch of distinctive 10-billion-yuan-level fine and deep aluminum processing industrial parks, thus further forging influential 100-billion-yuan-level aluminum processing industrial clusters. To initiate Gongyi provincial-level aluminum industry transformation demonstration and build internationally influential aluminum product brand center, R&D center, education center, new product release center and ecological aluminum demonstration base.

Move 3 is to implement greenization reconstruction. To strictly follow the concept of “volume reduction fundamentally, process control, end circulation” and center on industrial chain of “aluminum oxide --- electrolytic aluminum --- aluminum processing --- end aluminum product” to establish green supply chain system in aluminum industry; to develop solutions to initiate ecological rehabilitation project of red mud disposal site of key aluminum oxide enterprises and encourage them to do research on red mud emission reduction and improve multipurpose utilization rate by over 10% by 2020; by the end of 2019, eligible electrolytic aluminum and aluminum-oriented carbon enterprises should accomplish the reconstruction of ultra-low emissions; to withdraw electrolytic capacity in urban centers and eliminate the capacity below 200000 tons/single factory; to enhance the governance on unorganized emissions and VOCs emissions and further boost the “withdrawal from urban area and entering park” of urban aluminum processing enterprises; to shut down those enterprises that fail environmental standards; to launch in Dazhou Changge waste aluminum recycling market and dismantling market and forge recycled aluminum production base with megaton annual capacity; to set up society-wide aluminum recycling system. To implement green scheduling according to corporate emission level and exempt, in principle, those who are rated as leading green enterprises from peak-shifting production rule.

Move 4 is to improve electrolytic aluminum competence. To forbid newly-added electrolytic aluminum capacity and stabilized that to about 2.5 million tons and to enhance the cooperativity of the whole industrial chain; to explore win-win model for aluminum and electricity. Taking electricity mechanism reform as an opportunity to improve pricing policy of owned power plant and collect minimum payment in accordance with laws and regulations; to explore the model of shutting down and substitute power generation of owned coal-fired units; to encourage electrolytic aluminum enterprises to use substitute power generated by large effective and clean units for their domestic utility after their owned units are shut down. In the meantime, the substitute power gets involved in direct market transactions as increment and its price is kept no higher than the original price. For backbone electrolytic aluminum enterprises, to improve bank creditor commission mechanism and find good ways to prolong repayment cycle. To support them in reducing enterprise debt rate by financing such as debt-to-equity swap, share transferring and overall listing; to support enterprises in using electrolytic aluminum as intermediate to connect with post processing by intellectualization, greenization and technology reconstruction of the enterprises. Our goal is to further the efforts towards alloying, product premiumization and production individualization and incorporate eligible projects into demonstration projects so as to support them.

Move 5 is to enhance the cooperativity of whole supply chain. By the end of 2019, eligible aluminum-oriented carbon enterprises province-wide should accomplish ultra-low emission reconstruction. To forbid the increase of aluminum-oriented carbon capacity for any reason. By the end of October, 2020, to eliminate independent aluminum-oriented carbon enterprises with the annual capacity of below 100000 tons and to withdraw independent carbon enterprises that don’t meet environment and safety standards. To strictly follow standards to construct bauxite green mines and implement ecological restoration; to support Zhengzhou, Luoyang and Sanmenxia City and other provincial cities in taking tougher measures to eliminate high bauxite consumption capacity like boehmite calcination and brown aluminium oxide. To strengthen speaking right in aluminum market; to better construct aluminum ingot transaction market in Luoyang and Gongyi; to establish Luoyang Non-ferrous Metals Trading Center and Gongyi Central Aluminum Port to improve transaction warehouse capacity of Gongyi and Luoyang; to better complete the model of Xinjiang aluminum ingot – Henan processing and boost deepened integration of aluminum industry and logistics, finance, trade and Internet.