Nanshan Aluminum Plans to Invest $437 Million in an Aluminum Electrolysis Project in Indonesia

Nanshan Aluminum announced that it plans to form a joint venture between Shengshi Asia, an indirectly wholly-owned subsidiary of Nanshan Aluminum International (its holding subsidiary), and Shengshi Aluminum Industry to establish PT. HEAI, a project subsidiary in Indonesia, to build an electrolytic aluminum project with an annual output of 250,000 tons. This project is a significant step in the company's global expansion. It involves a total investment of approximately US$437 million (RMB 3.056 billion). Shengshi Asia will hold a 99% stake, while Shengshi Aluminum Industry will hold the remaining 1%. The construction period is 2 years, and the initial product is planned to be molten aluminum for further processing. According to the company announcement, by leveraging Indonesia's alumina resource endowment and cost advantages, this project will effectively help reduce costs and improve efficiency in the core electrolytic aluminum business. It will further expand the company's electrolytic aluminum capacity and profit margins based on existing production. This Indonesian electrolytic aluminum project is a key component of Nanshan Aluminum's long-term overseas development plan. Positioned as part of its overseas aluminum industry layout, it primarily targets the Southeast Asian market. The primary aluminum ingots and subsequent processed products will not only cater to regional demand but also support the company's own operational needs. Meanwhile, the company already has 250,000 tons of electrolytic aluminum capacity on Bintan Island. Adding this new project will form a large-scale production cluster of 500,000 tons, demonstrating strong long-term growth potential. Furthermore, the company currently owns two 35,000-ton docks on the island, capable of berthing 30,000-ton vessels, significantly reducing bauxite transportation costs compared to domestic operations. The project's location has been approved by the Indonesian government and upgraded to the Galang Batang Economic Zone, granting tax incentives to resident companies. The triple cost advantages in transportation, raw materials, and taxation make the production costs of Nanshan Aluminum's Indonesian electrolytic aluminum project highly competitive.