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China Hongqiao to build eco-friendly aluminum facility in Yunnan province

China Hongqiao Group Ltd. will build an environmentally friendly aluminum facility in Yunnan province that will use hydropower, Reuters reported Oct. 15, citing a statement from affiliate firm Shandong Weiqiao Pioneering Group Co. Ltd..

According to the newswire, the statement did not give details on the project's planned capacity. However, the report said that a website managed by the China Nonferrous Metals Industry Association wrote that Hongqiao will be constructing a 2-million-tonne-per-year integrated aluminum smelting and hydropower project in the province's Wenshan prefecture by the end of the year.

The report noted that several Chinese aluminum firms, including Aluminum Corporation of China Ltd. and Henan Shenhuo Group Co. Ltd., are interested in using Yunnan's hydropower resources for a cleaner smelting process.

Hongqiao has an annual smelting capacity of about 6.5 million tonnes of aluminum, all located in Shandong province, the report said.

Hongqiao did not respond to Reuters' request for comment.

In September, Hongqiao agreed to issue US$200 million of senior unsecured notes to refinance debt and for general corporate purposes. The company earlier cut its annual aluminum output guidance due to a typhoon.