Shanxi Guanlu net loss reaches USD 73 million in 2008

Interfax-China reported that Shanxi Guanlu Co. Ltd a Shenzhen Stock Exchange-listed aluminum smelter recorded a net loss of CNY 498.02 million in 2008 compared to a net profit of CNY 380.2 million in the previous year.

Shanxi Guanlu attributed the loss to sliding prices of primary aluminum, the company's major product. It generated an operating revenue of CNY 2.48 billion down by 12.46% on an annual basis.

Shanxi Guanlu primary aluminum output in 2008 reached 104,688 tonnes decreasing by 10.75%YoY.

Looking ahead, Shanxi Guanlu expects the Chinese aluminum market to remain depressed in 2009 due to an overcapacity of approximately 6.6 million tonnes consisting of 4.4 million tonnes of current annual capacity and 2.2 million tonnes of new capacities that have had their commissioning delayed. However, the company expects to see support from the state's various stimulus plans, including the State Reserve Bureau's aluminum purchases, as well as from falling raw material prices.

In 2009, the company plans to produce 83,000 tonnes of primary aluminum, 11,000 tonnes of cold rolled aluminum products and 15,400 tonnes of hot rolled aluminum products as well as to generate 1.6 billion kilowatt hours of electricity. It also intends to increase the use of its self-produced power, as well as to invest in large sized coalmines to secure coal supplies for its power plant.

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