How do these aluminum industries in Yunnan support the "China Aluminum Valley" of over 100 billion yuan in output value?

In China, there is a province whose aluminum production capacity has gone upstream in recent years and has become a rising star on China's aluminum map. This is Yunnan.

On December 13, it was learned from the Department of Industry and Information Technology of Yunnan Province that in recent years, Yunnan has focused on promoting the optimization and adjustment of industrial structure, and the trend of industrial agglomeration has gradually emerged. At present, Yunnan Province has formed 300,000 tons of monocrystalline silicon and 41 Kyrgyzstan. The production capacity of tile slices has produced 120,000 tons of monocrystalline silicon in the first 10 months of this year. Yunnan has become the world's largest green monocrystalline silicon photovoltaic material production base and is becoming the world's largest green silicon processing integrated manufacturing base.

In addition, Yunnan is accelerating the formation of the "China Aluminum Valley", and has successively introduced a number of leading enterprises such as Chinalco. It has built an electrolytic aluminum production capacity of 3.37 million tons. After the completion of all projects, the production capacity will be close to 8 million tons, accounting for nearly five percent of the country's total electrolytic aluminum production capacity. One, a number of deep processing and industrial chain supporting projects are accelerating, and Yunnan will become one of the world's largest green aluminum production bases. In fact, before 2018, the electrolytic aluminum industry in Yunnan did not attract the attention of the industry as it does today. Since Yunnan Province signed a strategic cooperation agreement with Aluminum Corporation of China in 2018, the province's aluminum industry has grown by leaps and bounds.

In particular, on May 27, 2019, Chinalco Group carried out a strategic reorganization of Yunnan Aluminum, a subsidiary of Yunnan Metallurgical Group, and Yunnan Aluminum was incorporated into Chinalco, and was upgraded from a local state-owned enterprise to a central enterprise based in Yunnan.

Why can Yunnan's electrolytic aluminum project counterattack all the way

The electrolytic aluminum project in Yunnan Province is advancing by leaps and bounds, which is in response to China's industrial layout of "North Aluminum to South and East Aluminum to West". The reason is that the transfer of electrolytic aluminum must be transferred to regions where energy and resources are rich and cheap. Yunnan has the following characteristics:

One is that abundant and low hydropower prices have crushed domestic provinces. Yunnan is rich in hydropower resources and is a large hydropower province in the country. The economically developable hydropower stations have an installed capacity of about one trillion kilowatts, mainly concentrated in the Jinsha River, Lancang River, and Nujiang River Basin. As a province with large hydropower resources, Yunnan Province has been committed to transforming hydropower advantages into development advantages and creating a world-class "green energy" brand.

According to official information, in order to convert surplus hydropower on-site and increase industrial added value, Yunnan Province mainly promotes a clustered layout of "hydropower aluminum + intensive processing", and will cultivate and build about 5 hydropower aluminum processing plants in the province within 3 to 5 years. Integrate key industrial parks to form a scale of 6 to 8 million tons of hydropower and aluminum, and build a 100 billion-level hydropower and aluminum integration base with comprehensive competitiveness and world influence.

The second is rich bauxite resources. Known as the “kingdom of non-ferrous metals”, Yunnan Province is rich in bauxite resources. Only the two regions of Wenshan and Dali are expected to have prospective bauxite reserves of more than 400 million tons. Countries with abundant bauxite reserves such as Laos are approaching. If the land import transportation channel for bauxite is opened, there will be no risk of "food shortage" in resource protection.

The third is that aluminum products are based in China and radiate to ASEAN countries. Internally, Yunnan is relatively close to the Pearl River Delta and Chengdu-Chongqing Economic Circle; externally, Yunnan is a bridgehead and a major channel radiating Southeast Asian countries under the "One Belt and One Road" initiative, and the prospects for the export of aluminum products are promising in the future.

Among the above three factors, electricity prices are decisively attractive.

Furthermore, parts of Yunnan belong to poverty-stricken areas. The key deployment of large-scale hydropower and aluminum integration projects in poverty-stricken areas rich in hydropower and mineral resources will effectively promote Yunnan's decisive victory in the fight against poverty.

Green and clean hydropower resources, abundant bauxite supply guarantees, and complete upstream and downstream chains of the aluminum industry, coupled with the protection of governments at all levels in Yunnan Province, naturally attract many domestic aluminum companies to gather here. After hydropower and tobacco, the aluminum industry will become the third pole of Yunnan's industrial economic growth. Yunnan is also becoming a major electrolytic aluminum province after Shandong, Xinjiang, and Inner Mongolia. In fact, after the signing of the strategic agreement, Chinalco Group and the Yunnan Provincial Government have in-depth marriage, focusing on supporting Yunnan Aluminum to build a "100 billion-level Southwest Base of Chinalco Aluminum Industry." At present, Yunnan Aluminum includes Yunlu Yangzonghai Branch, Wenshan Aluminum, Yunlu Runxin, Heqing Yixin, Yunlu Yongxin, Yunlu Haixin, Yunlu Zexin, Yunlu Luoxin, etc. Many branch companies are located in Kunming, Honghe, Dali, Zhaotong, Qujing and other places in the province, and are equipped with upstream and downstream enterprises such as alumina and aluminum carbon.

Yunnan is accelerating the formation of the "China Aluminum Valley". How do aluminum companies make efforts to support hundreds of billions of yuan in output value?

On May 15, 2020, another important landmark project for the development of the green aluminum industry in Wenshan Prefecture-Yunnan Wenshan Aluminum's 500,000 tons of green aluminum integration project was officially put into operation. The total investment of the project is 4.4 billion yuan. After the project is completed and put into production, the on-site conversion rate of aluminum will reach more than 80%, and the annual operating income can be 6.38 billion yuan and the total annual profit is 680 million yuan.

In Funing Green Hydropower Aluminum Integration Industrial Demonstration Park, Yunnan Shenhuo’s 900,000 tons of green hydropower aluminum integration project, which was energized and put into operation on December 31, 2019, has produced 45,000 tons of electrolytic aluminum as of July 4 this year. The output of electrolytic aluminum this year is expected to reach 300,000 tons. The total investment of the project is about 6.52 billion yuan, and after it reaches full production, the annual industrial output value will be about 13 billion yuan, and the tax will be more than 1 billion yuan.

In addition, on September 17, the 2.03 million tons of green aluminum project in the Yunnan Green Aluminum Innovation Industrial Park was put into production in Yanshan County, Wenshan Zhuang and Miao Autonomous Prefecture. The project was led by Weiqiao Venture Group. According to the plan, the Yunnan Green Aluminum Innovation Industrial Park has a total investment of 40 billion yuan. After it is completed, it is expected to become a high-end aluminum manufacturing base in my country. It can achieve annual sales income of about 100 billion yuan, realize an industrial added value of more than 30 billion yuan, and directly absorb employment. The number is over 12,000. At present, more than 10 domestic well-known aluminum processing companies have decided to settle in the park.

The “landing” of one aluminum construction project after another in Yunnan all proves that the foundations and guarantees for the development of the integrated green aluminum industry in Yunnan are basically available

It is foreseeable that in the future, Yunnan will not only be synonymous with tourist attractions, but also a heavyweight aluminum industry base. Although it may take several years of development to reach the height we imagined, we can think ahead and provide direction for the development of the enterprise.