RUSAL (00486) stated that it will establish a joint venture with Hebei Xinyi Cable, each with a 50% stake. It is understood that the long-term goal of the joint venture is to occupy a reasonable market share in China’s innovative aluminum alloy cable market, and then enter the Southeast Asian market.
According to Rusal, the project is still in the “feasibility study” stage. At this stage, market research, trial production, testing and certification will be carried out, and potential customers will be met to negotiate with project engineers who will help RUSAL understand the market potential and future sales volume, equipment requirements and the scope of investment required.
The reporter learned that in July 2016, Rusal sold its idle plant in Jamaica. Regarding whether there are other plans to sell assets in the second half of the year, Rusal pointed out that the group has been striving to find opportunities to effectively optimize its existing asset portfolio. There is no information to publish.
Rusal also stated that aluminum inventories fell by 53% year-on-year in the first half of this year due to a clear downward trend in inventory statistics.
Rusal also pointed out that the Chinese government is advancing supply-side reforms. In addition to existing measures, the Chinese government implemented stricter rules on newly launched production capacity in June, more rigorous supervision of inventories, and support for further industry integration. In this regard, the company believes that the active actions taken by the Chinese government will further improve the laws of China’s aluminum market.
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