Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Zhongfu completes the commissioning of 250,000mt annual capacity hydropower-based aluminium plant in Guangyuan, Sichuan. The production line at the second unit of Zhongfu’s Phase I project has 116 pre-baked 400KA electrolytic cells, which were energized to start full-scale operations at the plant. The first section of the project with 118 slots was put to production in November 2019.


The project is part of tranformation and transfer of Henan-based Zhongfu Industrial to Guangyuan city in China’s southwest Sichuan province. The Henan smelter was powered by coal and was transferred to Guangyan to tap eco-friendly hydropower and become cost competitive. This capacity transfer project is invested and implemented by Yulian Group and Zhongfu Industrial.

At Guangyuan, Zhongfu has reduced its per ton electricity cost by more than 40pc. The plant’s proximity to rails has reduced its raw materials and finished products transportation cost by 70pc further cutting the smelter’s production cost.


Guangyuan Zhongfu Phase I project will focus on deep processing projects so that 100pc of the aluminium liquid produced on-site is converted in value-added products such as alloy ingots and alloy rods. The company will provide high-quality energy guarantee for the city and anchor a 100-billion aluminium industry cluster with internal raw material and industrial supply chain. 


China is aggressively enforcing structural supply side reforms in the aluminium industry. The government is controlling additional production by shutting down low-tech and inefficient production capacity. The total amount of electrolytic aluminium production capacity in the country is also being strictly controlled. 

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