MOSCOW - Saturday, November 8th 2014 [ME NewsWire]
(BUSINESS
WIRE)-- Vi Holding plans to complete construction and fully start up
the vertically integrated Yulian complex in Henan province for hot and
cold rolling of aluminum alloys, with capacity for 600,000 tonnes and
400,000 tonnes respectively, in the second half of 2015.
Launch of
the Yulian facility will mark the concluding phase of the project to
create a group of enterprises for high level aluminum processing in
China that Vi Holding began in 2006. Overall investment now totals $3.3
billion, including $1.2 billion provided by shareholders, with the rest
financed with Chinese bank loans and reinvested earnings.
Speaking at
an intergovernmental meeting in Sochi in October, Vice Premier Wang
Yang said that there had never been a comparable Russian-implemented
investment project in China.
When it has started up, the Yulian
complex will hold a 20% share of the Chinese market for aluminum
production in a host of high-tech segments - the largest in the world,
Group Founder and President Vitaliy Machitski said.
Vi Holding's
Chinese complex currently has capacity to produce about 800,000 tonnes
of highly refined aluminum, including 600,000 tonnes of hot roll, 60,000
tonnes of flat products and 150,000 tonnes of anodes. It has capacity
to produce 750,000 tonnes of primary aluminum for refining and 420,000
tonnes of castings.
A vertically integrated production complex has
been created, including coal production, electricity generation, output
of prebaked anodes, electric aluminum and alloys, and high level
processing of primary aluminum into high-tech products. The Yulian
complex is not an aluminum smelter, but rather a facility for producing
high-tech products from aluminum, Vi Holding management said.
Electricity
is supplied from power plants with 1,500 megawatts of combined
capacity, the fuel for which is supplied from nine nearby company-owned
mines with 150 million tonnes of proven reserves. Vi Holding employs
about 16,000 people in China.
The complex is located in two
industrial parks, in the cities of Gongyi and Linzhou. It is part of
Henan Yulian Energy Group, which is 97% owned by Vimetco, which in turn
is controlled by Vi Holding.
Vi Holding, which until now had
developed the project without any state support, expects to receive
support from the Chinese authorities under China's policy of stimulating
creation of high-tech integrated production.
Vi Holding management
said the project will reduce the Chinese market's reliance on imports in
a host of segments: materials for aluminum cans, lithographic sheet
(CTP, CNCP), billets for high-tech foil, aluminum sheet for the
automotive industry and other products requiring high-precision alloys.
“The
Yulian investment project is included on the list of the 500 best
high-tech enterprises in China,” said Zhang Deguang, the board chairman
of the China Foundation of International Studies. “This will serve as a
worthy example for future expansion of our cooperation,” he said.
At
the intergovernmental meeting in Sochi, Wang said the Chinese
authorities “are studying the topic of conversation with the Russian
side concerning the Vi Holding project” and will seek a solution to the
problems that metallurgical enterprises in China are encountering.
Yulian
received the status of a joint venture with participation of foreign
capital even before the arrival of Vi Holding: in 2003, Oriental Patron,
a company controlled by Hong Kong investors Zhang Gao Bo and Zhang Zhi
Ping, invested in company shares. Vi Holding joined the project in 2006.
Oriental Patron currently has a 10% stake in Vimetco.
In addition to
its investment in the aluminum sector, Vi Holding is engaged in
developing the Darwendale platinum deposit in Zimbabwe, one of the
biggest platinum deposits in the world. It also has property development
projects in Moscow.
Contacts
Vi Holding
Anatoliy Shiryaev,
+7 (495) 959-4202
President’s Adviser on Media, Relations and Communications
fax: +7 (495) 959-4251
viholding@viholding.com
www.viholding.com
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