Chinalco Implements Leap-forward Development of Aluminum Processing Strategy

Assistant Ding Haiyan, General Manager of China Aluminum Corporation, pointed out at the just-concluded 2006 China International Aluminum Processing Technology and Equipment Forum that according to the current status of China's aluminum processing capacity and the development in the next five years, it can basically meet the needs of its own growth. However, at the same time, it is necessary to pay close attention to the satisfaction and adaptability of the product variety coverage and technical quality. Although Chinalco is the first aluminum producer in Asia, it is neither strong nor high in terms of aluminum processing capacity or aluminum production. In the aluminum industry chain of aluminum, Processing is also just starting to integrate. To this end, Chinalco has formulated a strategy to leapfrog development of aluminum processing and will gradually implement it. He explained that Chinalco's development strategy for leap-forward aluminum processing is concretely based on the "four processing bases" and "one research institute" at the same time, and at the same time, it seeks to seek industrial matching, complementary capabilities, and technology sharing. The joint mergers and acquisitions operations that are tied to capital operations. The four processing bases are: Chinalco Southwest Aluminum Base, which has a production capacity of 800,000 tons based on production of alloy materials and high-precision plate strips; Chinalco Henan Base, which is formed mainly of ordinary alloy materials and mid-range plates. Ten thousand tons of production capacity; Chinalco Ruisui formed a production capacity of 300,000 tons mainly producing high-precision strips and aluminum foil billets; Lan Aluminum’s northwestern aluminum base is formed to produce high-grade aluminum foil and extrusion materials. ~ 300,000 tons of production capacity. A research institute is the Suzhou Nonferrous Metal Processing Research Institute. It mainly conducts research on aluminum, molybdenum, magnesium, and rare metal technologies, alloy development, quality research, and forward-looking research and development. The second is to construct the aluminum alloy processing and marketing integration of China Aluminum Corporation and the unified marketing business model. Specifically, the production operation is towards professionalism, intensive, and large-scale efforts; gradually forms a group collaboration method with unified standards, technology sharing, and complementary capabilities; optimizes resource allocation, and coordinates upstream and downstream process capabilities to form a benign interactive industry. The chain supports the organic whole; constructs a unified centralized management, a reasonable regional layout (internal and foreign trade), and an integrated marketing system that operates at different levels, and gradually forms a marketing system in which customer resources are shared, sales channels are merged, centralized, and specific and rapid mechanisms are reflected; Relying on the regional layout, we will construct cutting and distribution centers in a timely manner to better serve the market and increase the market's response speed so as to enhance the value of our products. Finally, the aluminum processing capacity of China Aluminum Corporation is expanded by means of technological transformation, filling and repairing methods and increasing investment. Firstly, technological transformation will promote the increase of process capability, and at the same time, lay a good foundation for improving efficiency and reducing consumption; secondly, to fill up and complement the process, and provide supporting capabilities for upstream and downstream processes, and to use the efficiency of stock assets; and at the same time, in response to market requirements, look ahead. The investment in sex operation projects aims at grasping the scale growth and investment return to realize the goal of becoming bigger and stronger. Finally, the capital operation is used as a link to carry out capacity integration operations, and the prerequisites for achieving strong and strong alliances and complementarities are to be achieved, and strategies are adopted. Join together to form a good partnership and achieve a win-win situation. Ding Haiyan stated that in today’s increasingly fierce international and domestic competition, external competition cannot be avoided and cannot be avoided. What Chinalco wants to do is to grasp management, grasp technology, manage its own affairs, and improve its internal strength. Continuing to adhere to the concept of “strengthening governance, innovation, and strength”, we will build a safe, healthy, and harmonious China Aluminum Corporation through “people-oriented” through technological progress and scientific management. The development goals of Chinalco in 2010 are: capacity building of 1.7 to 2 million tons, production volume of 1.3 to 1.5 million tons, and construction of a base for the export of high-precision aluminum strips, alloy products, and aluminum materials.