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Shares of Nanshan Aluminum rallied following an announcement that the company plans to expand its electrolytic aluminum production capacity in Indonesia. The stock closed up 7.5%, reaching CNY6.60 (roughly 95 US cents), while the broader Shanghai Composite Index remained flat.
The company will invest approximately $437 million to establish a new electrolytic aluminum plant in the Bintan Industrial Estate. This facility is expected to produce 250,000 tons annually and will primarily supply raw materials to downstream aluminum processing businesses. The construction phase is projected to take two years.
This new project aims to capitalize on Indonesia’s rich mineral resources and lower production costs. The move is designed to better meet local market demand, strengthen the company’s international operations, and boost profit margins.
This is the second electrolytic aluminum plant of this size that Nanshan Aluminum plans to build. The first, announced in April 2023, is already under construction in the same industrial estate and is scheduled for completion and operation by June.
Indonesia’s abundance of bauxite resources positions it as a key player in the aluminum industry. Nanshan Aluminum holds bauxite mining rights on Bintan Island through its subsidiary, Global Aluminum International, which also operates an alumina refinery with a capacity of four million tons per year in the area. This makes the company a major supplier in Southeast Asia.
Nanshan Aluminum produces high-end aluminum products with a full supply chain presence. In 2024, it produced nearly 3.77 million tons of alumina and about 678,200 tons of electrolytic aluminum. Its customer base includes major aerospace and automotive giants such as Boeing, Airbus, Rolls-Royce, Safran, BMW Group, Volkswagen, Tesla, and General Motors.
The company’s international revenues jumped 31% in 2024, reaching CNY17.8 billion (approximately $2.6 billion), representing about 53% of its total annual revenue.
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