Shandong Xinfa aluminum may have to cut production

Bloomberg reported that Shandong Xinfa Aluminum and Electricity Group may have to cut output as a shortage of coal threatens to disrupt power supplies.

Mr Fan Liangong head of Xinfa's power generation department said that there is a possibility the company can't get enough coal and is forced to shut aluminum cells, although it's extremely costly to do so. He said that ¡°We're doing all our best to ensure power supplies to our aluminum plants'' which have been running normally so far. It's very hard to buy coal.''

He added that ¡°For us, the real threat is coal. The government order has little to do with us because we don't use the state grid power.''

Shandong Xinfa's annual electricity generation capacity is 8 billion kilowatt hours while its aluminum production capacity is 560,000 tonnes. A coal shortage has exacerbated power supplies in China, which gets 80% of its power supplies from coal fired generators. 

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