Chalco cuts aluminum smelter output against severe losses

Chalco, China's top aluminium producer, has slashed output at its two smelters as high electricity costs and falling prices have severly hit their bottomlines.

Chalco (Liancheng) shut down 80 * 200kA electrolytic cells and 12 * 600KA electrolytic cells in H1 2015, and has closed almost all of its 200KA electrolytic cells till now, said an executive from the company. Chalco (Lanzhou) is also struggling due to power cost hike and declining aluminium prices. After having run in losses it shut down 25 * 200KA electrolytic cells last year.

What is plaguing Chalco's operations the most is the lack of captive power plants in its aluminum smelters. This has put them in a bad strategic position over rival companies operating smelters with captive power plants.

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