China Securities Journal focuses on Nanshan Aluminum's deepening overseas strategy

Recently, China Securities Journal published a report titled "A Real Exploration of Nanshan Aluminum's Indonesian Base: Deepening the Overseas Strategy to Recreate a "Nanshan"" in the "Company Profile" edition, introducing Nanshan Aluminum's use of its Indonesian base as a fulcrum to accelerate the promotion of its overseas strategy, and praised it as a representative of "Chinese companies' overseas expansion entering the 3.0 stage."

Accelerate the overseas expansion strategy

Daozhong introduced that in recent years, the Indonesian project has become an important fulcrum for Nanshan Aluminum to promote its overseas strategy and open up growth space. The industrial park in the Karangbatang Special Economic Zone in Indonesia, where the project is located, is centered on Indonesia Bintan Alumina Co., Ltd. and is planned, constructed and put into production in stages according to the industrial model of port-power center-alumina-electrolytic aluminum.

At present, it has the full production capacity of 2 million tons of alumina, and has started the subsequent 2 million tons of alumina expansion project. The long-term plan is to further extend the aluminum processing industry chain in Indonesia. The relevant person in charge of Nanshan Aluminum said that with the gradual recovery of overseas demand for aluminum products this year, the 2 million tons of alumina project of Indonesia Bintan Alumina Co., Ltd. has shown strong profitability this year, and the production capacity has been in full production, with overall gratifying performance.

Nanshan Aluminum's early overseas layout has allowed it to fully enjoy the dividends of this year's alumina price increase. Driven by the 2 million tons of alumina project in Indonesia, Nanshan Aluminum achieved operating income of 24.226 billion yuan in the first three quarters of this year, an increase of 11.7% year-on-year; net profit of 3.49 billion yuan, a year-on-year increase of 62.94%. Among them, the third quarter achieved operating income of 8.559 billion yuan, a year-on-year increase of 19.06%; net profit of 1.301 billion yuan, a year-on-year increase of 57%.

Build a complete industrial chain

The report pointed out that from product exports to overseas production capacity, and then to building a complete overseas industrial chain through localization construction, Chinese companies' overseas expansion is entering the 3.0 stage, and Nanshan Aluminum is one of the representatives.

In recent years, Nanshan Aluminum has continuously extended its industrial chain upstream and downstream, gradually forming a development pattern in which it focuses on high-barrier products such as aviation plates and automobile plates domestically, and focuses on upstream alumina and electrolytic aluminum overseas.

In an interview, Lu Zhengfeng, chairman of Shandong Aluminum, said that in the future the company will continue to strengthen, extend and supplement its supply chain. On the one hand, it will continue to focus on high-end products such as aviation plates and automotive plates to consolidate its development foundation; on the other hand, it will accelerate the layout of alumina and electrolytic aluminum production capacity in Indonesia.

Lyu Zhengfeng introduced that Indonesia has rich bauxite and coal resources, and nonferrous metals are one of the 12 key industries for international capacity cooperation identified by the country as "strong manufacturing capabilities, high technical levels, obvious international competitive advantages, and demand in the international market." "Practice has proved that the layout in Indonesia has played a vital role in improving our industrial chain layout and accelerating the development of our internationalization strategy."

"Our overseas layout is not simply to export production capacity overseas, but to package advanced technology, processes, management and experience together to export overseas, realize global manufacturing, and promote the global layout of business." Lv Zhengfeng further stated that the company's long-term plan is to further extend the aluminum processing industry chain in Indonesia if policies allow. In addition, the park will also introduce other upstream and downstream enterprises in the industry chain to settle in, realize resource sharing, and achieve mutual benefit and win-win results.

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