Location：Home >> News Center >> Industry News News Center
Russia’s aluminum industry thinks highly of China’s market
Russian aluminum industry is one of the world's largest aluminum manufacturing industries, accounting for about 7% of global manufacture of aluminum. Oleg Deripaska, Russian President of aluminum industry, points out that China's aluminum output has exceeded domestic demand. With the rapid increase of China’s aluminum output, China should not only tackle overcapacity and improve industry consolidation in the next 6 months, but also decrease aluminum enterprises so that large aluminum enterprises can occupy a dominant position.
During the process of tackling aluminum overcapacity, Russian government and enterprises carried out a special program to help to place unemployed workers. In 2011 and 2012, after cutting down investment, Russia’s aluminum industry used the expense for repayments which effectively resolved the debt problem. After tackling overcapacity, Russia’s aluminum industry has been consecutively made a profit for two years by diverting its focus from primary aluminum to higher-value products. In this way, enterprise expenditures are cut and lots of labor resources are saved. Russia’s aluminum industry not only lowers emissions of aluminum, but also endeavors to improve the quality of development and researches in order to become innovative enterprises. Next year, Russia’s aluminum industry will pay dividends, which is the first time in the recent 7 years.
In China, aluminum output has increased more than 50% in the past 4 years, with the surplus production of 35%. This is mainly influenced by preferential terms of loans, unreasonable stimulus of environmental problem and employment standards, which eventually leads to China’s aluminum industry making up only 0.01% of GDP but pollutant emissions reaching 8%. Although China’s steel and coal industries have tackled overcapacity, it’s not extended to aluminum industry. According to Oleg Deripaska, there is concern that the continous increase of global aluminum output will damage enterprises’ interests. Therefore, China’s government should take an immediate action to tackle overcapacity through reform to ultimately achieve the goals of reducing aluminum output, emissions and the impact on the surrounding environment. Enterprises should also divert their focus from the initial stage of primary aluminum to the production of higher added -value products.
Russia’s aluminum products have been spread to the South Korea, Japan and Europe. With a huge potential of growth, China is an essential target market for Russia’s aluminum industry. In the future, Russia’s aluminum industry will continue to develop processing industry, including establishing a joint venture in China and producing innovative products to meet the needs of Chinese domestic and foreign markets. More importantly, Russia’s aluminum industry will continue to increase the intensity of technological innovation and improve aluminum using in various industries with other industrial partners.
If you want to grasp the chance to know more about the information of aluminum industry, there will be a good time for you. AL Expo 2016 will be held in China Import & Export Fair Complex in Guangzhou from September 26th to 28th 2016. Look forward to your presence sincerely!