CRU China Formulates Aluminium Industry Development Plan for Chinese Government

LONDON, July 8, 2019 /PRNewswire/ -- In March 2019, CRU was tasked to perform a comprehensive review of Baise City's aluminium industry chain, from bauxite mining to aluminium products. The review was completed in May 2019 and praised by the Deputy Mayor of Baise.

From the 1980s, Baise's aluminium industry has grown into an important part of the Guangxi economy. CRU's remit was to specify which downstream aluminium products Baise should prioritise in its future development plans. As an international commodities consultancy, with a presence in China, CRU's reports were developed by world-leading technical analysts and a project team in China with local experience.

CRU provided detailed product positioning reports, analysing how the recommended downstream products might be compatible with the productive capacity, costs and revenues of Baise's existing value chain.

Deputy Mayor of Baise Mr Shi Guohuai endorses CRU's report

Deputy Mayor of Baise Mr Shi Guohuai stated, "CRU's work has not only given us an international perspective from which to view the development of the global aluminium refining industry, but, even more importantly, has addressed one of the key questions for the development of Baise's aluminium industry—how Baise should orient its downstream aluminium refining industry for high, medium and low end products, and how to cultivate value."

"I particularly thank CRU for outlining the areas of aluminium industry which Baise should be cautious to enter, such as aluminium for aviation. I believe CRU's level of expertise will allow Baise to determine a stable plan for the development of Baise's downstream aluminium industry."

CRU is proud to work with Baise city

The story of Baise city's aluminium industry goes back to 1986, when Deng Xiaoping gave instructions for the development of Guangxi Pingguo Bauxite. Since then, the government of the Guangxi Prefecture Autonomous Region and the Federal Government have provided more than 30 years of continuous support. CRU sees great potential in the future development of the aluminium industry in Baise.

Read the full story: https://www.crugroup.com/about-cru/news/2019/cru-china-formulates-aluminium-industry-development-plan-for-chinese-government/ 

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About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

Introduction of the development of Baise aluminum industry

Baise is a major channel for exporting to the southwest of China. It is a national highway transportation hub, it basically forms a three-dimensional traffic pattern of "five in one" of expressway, railway, aviation, shipping and port. Bordering Vietnam, it is the frontier of the two-way opening between China and ASEAN. It governs 12 counties (cities, districts) with a total population of 4.18 million, With a total area of 36,300 square kilometers, it is a city with a pleasant scenery and simple folk customs.

Baise is rich in minerals, abundant in bauxite, coal, manganese copper, calcium carbonate and other resources. Since Deng Xiaoping made an important instruction on "Guangxi Pingguo Aluminum must to be engaged" in 1986, the Party Central Committee, the State Council, and the Party Committee and Government of the Guangxi Zhuang Autonomous Region have paid more attention to Baise and strongly supported the development of its aluminum industry. In 2011, the state established the Baise Eco-Aluminum Industry Demonstration Base. In recent years, Baise City has boldly explored the supply-side structural reform road with characteristics of the times and resource-based economy, take the "coal, electricity and aluminum integrated circular economy industrial chain" to guide the overall development.

Baise has the advantage of clustering in the industrial parks. The city has 9 aluminum-related industrial parks, and a new one is planning. The park has a reasonable layout, complete functions and complete infrastructure. In 2018, the output of alumina reached 8.17 million tons, and the output of electrolytic aluminum was 1.43 million tons. In addition, the output of aluminum processing was 3.08 million tons. According to industry statistics, the output value of the aluminum industries and supporting industries in the city reached 128 billion yuan in 2018.To achieve high-quality development, Baise proposes five major aluminum industrial chains, such as aluminum for transportation, aluminum for industrial use, aluminum for packaging, aluminum for construction, and aluminum for electronic household appliances. By the year 2023, Baise will achieve the innovation drive of the demonstration base, Industry clusters are highlighted, output benefits are improved, and product added value is increased. The core gathering area of "Baise aluminum deep processing" will be built, and the national resource-based urban industrial transformation and upgrading demonstration zone will be found.

SOURCE CRU