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Hualu Aluminum Will Construct Large Coal-Power-Aluminum Aluminum Processing Industrial Chain

The reporter learned from relevant departments of Baiyin City that in order to further push forward industrial upgrading, fulfill expansion and consolidation of the enterprise, Gansu Hualu Aluminum Co., Ltd (Hualu Aluminum) will implement Out-Of-City-Into-Park project, build large coal-power-aluminum aluminum processing combined enterprise in Liuchuan Industrial Zone, recently, all Out-Of-City-Into-Park tasks were proceeding smoothly.

Founded in 1986 as Baiyin Aluminum Factory, Hualu Aluminum is a key construction project of the state government’s Seventh Five Year Plan, currently it is a holding subsidiary of Chinalco Co., Ltd, in which Chinalco holds 51% equity, Baiyin Nonferrous Group holds 49% equity.

In the recent several years, Hualu Aluminum’s production and operation size has expanded to certain degree, equipment standard continued to improve, profit-earning ability increased obviously. Up till now the company has developed production ability of 230,000 t/a of aluminum product, 130,000 t/a of Pre-bake Anode for Aluminum Smelter, and 60,000 t/a of aluminum deep processing. By the end of 2014, the company has a total asset of 1.896 billion yuan, total liability of 1.181 billion yuan, and net asset of 715 million yuan. The company currently has 1500 employees, in which over 300 persons are professional technological personnel specializing in different disciplines. The company’s key technological and economic indicators maintained relatively satisfactory level in the same industry, Honglu brand re-melting aluminum ingot passed ISO9001 quality system certification in 1997, and is a registered brand aluminum ingot of Shanghai Metal Exchange and LME; in 2004 it was awarded Nonferrous Metal Product Physical Object Quality Golden Cup Prize by the China Nonferrous Metals Industry Association.

In recent years, Hualu Aluminum actively grasped opportunities, confronted challenges, concentrated cohesion, and tackled difficulties; it worked diligently in coping with grim market challenge, broke bottleneck in implementing key tasks, diffused crisis in reducing cost, increasing efficiency, making adjustment and optimization, improved vitality in deepening reform and innovating mechanism, went all out to reduce cost and increase efficiency, actively pushed forward operation transition and marketization reform, continually strengthened field management and process technological adjustment, refined and enforced loss-reversing and difficulty extrication measures, which ensured the enterprise’s stable operation; from 2011 to 2014, Hualu Aluminum manufactured 839,500 tonnes of aluminum products, and 155,600 tonnes of alloy products, total fulfilled gross industrial output value reached 21.1 billion yuan, fulfilled 1.1 billion yuan of pre-tax profit, fulfilled 20 billion yuan of income form main business, and 1 billion yuan of total tax and profit, with which it made positive contribution to local economic and social development.

The Out-Of-City-Into-Park and industry industrial upgrading project is the key target of Hualu Aluminum for next step development. This work received high level of concern from Chinalco, Gansu Province, and Baiyin City, at present the promotion work is proceeding smoothly. On December 28, 2014, Ge Honglin, Chairman and Secretary of Party Leadership Group of Chinalco, paid a survey visit to Gansu, during the period of which he held talks with Governor Liu Weiping, and put forward clear requirements on the enterprise‘s promotion of Out-Of-City-Into-Park work. In September 2014, Chinalco and Baiyin municipal government reached agreement over matters concerning Hualu Aluminum’s Out-Of-City-Into-Park, expansion, consolidation & transition, upgrading, strengthening local enterprise cooperation, and set up a Hualu Aluminum Out-Of-City-Into-Park Work Promotion Team headed by Team Leader Jia Ruchang, Vice Mayor of Municipal Government, and Deputy Team Leader He Wenjian, Deputy General Manager of the Enterprise Management Department of Chinalco Co., Ltd, Deputy Team Leader Sun Botao, General Manager of Hualu Aluminum, and Deputy Team Leader Li Zhongke, Deputy Secretary of the Party Committee of Baiyin Nonferrous Group.

Hualu Aluminum Out-Of-City-Into-Park & industrial upgrading project mainly aims to rely on Out-Of-City-Into-Park approach to phase out backward capacity, achieve industrial upgrading, construct large coal-power-aluminum aluminum processing combined enterprise in the Baiyin City Liuchuan Industrial Concentration zone, and enhance the company’s overall equipment standard, in order to achieve the target of improving the company’s competitiveness. The execution of this project complies with the state government’s strategic planning for Silk Road Economic Belt, complies with Gansu Province’s Out-Of-City-Into-Park overall planning, and complies with Chinalco’s requirements in industrial upgrading and strategic transition.

Gansu Provincial Government and Baiyin Municipal People’s Government also attached great importance to this project and offered vigorous policy support, identified the provincial government to play dominant role, chose relevant own-province enterprises for combined restructuring to develop coal-power-aluminum integration; the company’s exchanged land would be planned as commercial and residential land, it only needs to pay less than 10% land alteration fee; the part of land proceeds retained at municipal level is all used for enterprise Out-Of-City-Into-Park and staff settlement; the municipal government and all government departments are responsible for connecting and implementing all preferential policies in planning, land, taxation and financing for urban old industrial zone relocation upgrading which are applicable to Hualu Aluminum Out-Of-City-Into-Park project, Hualu Aluminum is encouraged to obtain financing through land transfer, development, and mortgage loan after the land is transferred to commercial land, so as to raise project kickoff capital. On October 12, 2014, Baiyin City Industry and Information Technology Commission issued the “Opinions on Arranging the Progress of Gansu Hualu Aluminum Co., Ltd Out-Of-City-Into-Park Work”, identified key work progress schedule and division of labor among government departments. On January 14, 2015, Chinalco held talks with CPC Gansu Provincial Committee and Provincial Government, CPC Baiyin Municipal Committee and Baiyin Municipal Government over the exchange of Hualu Aluminum plant zone to the industrial park zone and the transition to aluminum processing enterprise, and Jingyuan Coal Industry Group’s joint operation to develop coal-power-aluminum aluminum processing integration cooperation, and exchanged views on relevant matters. At present, this project is in the stage of study and compiling relevant feasibility research reports. The land earmarked by Liuchuan Industrial Park for the company’s Out-Of-City-Into-Park has been leveled; water, electricity, road and natural gas are all connected, the conditions for starting project construction are ripe.