Sigma to build a 200,000 tonnes per annum liquid aluminium factory by June 2020

China’s largest secondary aluminium producer Sigma Group will reportedly build a liquid aluminium factory in Gongxi, Henan, with an annual capacity of 200,000 tonnes. According to Shanghai Metals Market report, this liquid aluminium will be supplied to the processing plant of Zhongfu Industry, as Sigma and Zhongfu signed a supply agreement on Tuesday, December 3.

The factory will be located in Yulian Industrial Park and is expected to be operational in June 2020.

Zhongfu’s costs for aluminium deep and precision process are expected to come down by RMB 800 per tonne to RMB 1,000 per tonne once this plant becomes operational next year.

According to SMM research, there are 3 million tonnes of aluminium processing capacities in Gongyi, but less than 10 per cent of it uses secondary aluminium. Sigma believes that die-casters in the future will prefer liquid aluminium to ingots.

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