China should accelerate the aluminum industry to production capacity
2016/11/8 14:01:42
Rusal is one of the world's largest producers of aluminum, accounting for about 7% of global aluminum production and 7% of alumina production. In the China Development Forum 2016 annual meeting to go to productivity and deleveraging sub-forum, the Russian Aluminum Chairman Oleg Deripaska (Oleg Deripaska) pointed out that the Chinese aluminum industry's production capacity has exceeded domestic demand, exceeding the rate of 35%. Oleg Deripaska, an exclusive interview with China Economic Times, pointed out that in the past few years, China's aluminum production has increased rapidly, and China should vigorously promote the aluminum industry's production capacity in the next six months. Large industry consolidation efforts, the existing aluminum production enterprises reduced to 3 to 4, so that large aluminum companies dominate.
From 2008 to 2015, the Russian aluminum industry has reduced production capacity of 35%, has basically completed the adjustment of production capacity. This year the Russian aluminum industry to produce higher value-added, higher levels of products. After several years of adjustment, the modernization of the Russian aluminum industry, environmental protection capacity than ever before, from this year will no longer use non-renewable energy.
Rusal has been profitable for two consecutive years and has shifted the focus of production from primary aluminum production to higher value-added products. Corporate expenses have been reduced and profit margins have stabilized, saving a lot of labor resources.
From 2008 onwards, outside China's alumina producers, no increase in production. But China's output in the past four years, an increase of more than 50%, China's current aluminum production capacity surplus has reached 35%, which was mainly due to the conditions of loans, environmental protection and employment standards such as unreasonable incentives Impact, eventually leading to China's aluminum industry although only accounted for 0.01% of GDP, but the emissions of pollutants accounted for 8%.
China's aluminum industry needs to go to capacity, through the reform of aluminum production to reduce the final, reduce emissions, reduce the impact on the surrounding environment, the production of primary aluminum from the initial stage, the transfer of production to higher value-added products.
Although China has started to go to production in the steel and coal industry, it has not yet been extended to the aluminum industry. This worries us that the global production of aluminum ore will continue to increase and the profit of the enterprise will continue to decrease, resulting in a vicious circle. For example, some companies may be because of low profits, no money to invest in research and development. In the past few years, the subsidy policy of the Chinese government has already witnessed some vicious circle. If it continues, it will cause the Chinese enterprises to lose their competitive advantages and development opportunities in the international market and lose the chance of investment in scientific research. The Government should act as soon as possible, preferably within six months will begin to implement the aluminum industry to production capacity action, the bank as creditors have to act, companies through in-depth mergers and acquisitions, the last remaining 3 to 4 large enterprises.
In the Russian aluminum industry to the production process, the Russian government introduced a special plan to help resettle the unemployed workers, the company also developed a number of programs to help unemployed workers. In 2011 and 2012, the Russian aluminum industry to reduce investment, will be used to invest the money to repay, effectively resolve the debt problem.
RUSAL has been pushing for a restructuring since 2009, and it has been six years since then. A lot of efforts and difficulties have been encountered, but now some results have been achieved. Rusal not only has low aluminum emissions per tonne, Development of quality and research, but also done a lot, the successful transformation of innovative companies. Next year, Russia's aluminum industry will be issued dividends, which is the first time in the past 7 years, dividends.
In the process of reorganization, part of the enterprise debt to be converted into stocks, business management continued to improve, more transparent. In the future, large enterprises in the process of mergers and acquisitions, should not increase the pressure on the Government, several companies after the merger, low-profit companies to reduce production at the same time, to transform the production of higher value-added products and training workers.
Rusal has been producing products in Korea, Japan and Europe. China is an important target market for Rusal, with good potential for growth. In the future RUSAL will continue to expand its processing industry, including joint ventures in China, to produce innovative products to meet the needs of domestic and foreign markets, and will continue to reinforce technological innovation to reduce the impact on the surrounding environment , And together with other partners to increase the ratio of aluminum used in various industries. The joint venture will be established soon, but the specific details of the current inconvenience to disclose.