DJ China Names 2 Galvanized Aluminum Cos For Direct Pwr-Analysts

Two galvanized aluminum producers will soon get electricity directly from state-owned power plants, which will help reduce output costs, analysts said Monday.

China has named the Guangxi region branch of Aluminum Corp. of China, or Chinalco, as one of 16 galvanized aluminum producers slated for direct power supply as part of the country's economic stimulus plan, said an aluminum analyst with Beijing Antaike, the state-owned metals consultancy.

Henna Shenhuo Group Co. will also get off-grid electricity supplied directly to its galvanized aluminum plant, said an aluminum analyst with Great Wall Futures.

A Henna Shenhuo Group employee said that the company will shut its own power plant as it is too costly to run, according to the Great Wall Futures analyst.
 
The analysts said directly supplied electricity is cheaper than power available from the state grid, without elaborating. Last week, China's State Council approved a stimulus plan for the metals industry that included provision for cost-cutting measures to benefit the the galvanized aluminum industry.

China's State Reserve Bureau purchased aluminum from Chinalco and Henna Shenhuo Group, among other producers, to shore up its reserves in December and February.

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