Yunnan Shenhuo smelter, a subordinate of the Henan Shenhuo Group, is slowing project construction due to poor weather. Henan Shenhuo Group has a 920 ktpy quota for primary aluminium smelting, of which 20 ktpy has been replaced/sold to IM Jinlian smelter. The remaining 900 ktpy was replaced/sold to the Yunnan Shenhuo smelter.
Backed by total investment of RMB6.75 bln, project development of the Yunnan Shenhuo smelter is to be carried out in two phases. Phase I was originally scheduled to come online by end-September. According to an inside source, Phase I project will now come online between October-December in three stages. Phase II is scheduled to come online in 2020. It is believed that the delay in commencement has nothing to do with alumina supply.