In the first set of the list concerning the enterprises which eliminated the laggard electrolytic aluminum capacity, there are four enterprises, and the laggard capacity totaled 260,000 tons.
The four enterprises are Henan Xingwang Aluminum Co., Ltd., Henan Linzhou Linfeng Aluminum Electricity Co., Ltd, Henan Mianchi Tianrui Aluminum Co., Ltd., Henan Shangqiu Fengyuan Aluminum Electricity Co., Ltd, and the laggard capacity are 50,000 tons , 70,000 tons , 65,000 tons, and 75,000 tons respectively. The four enterprises are all in the Henan province, which occupies an important role in the electrolytic aluminum industry, and the capacity occupies one fourth in the whole capacity in China.
The electrolytic aluminum enterprises in Henan province face a series of problems such as high production cost, low products price, weak market demand, and high stock, and so do the electrolytic aluminum enterprises in the whole China. Some electrolytic aluminum enterprises have already stopped production.
The relevant data shows in 2012, the capacity of electrolytic aluminum totaled 26 million tons, but the rate of capacity utilization only reached 78%. The capacity under construction is 10 million tons.
Though the elimination the capacity has little significance in change the whole situation, it will become a new start for reduce the capacity.