Chinalco decrease production

Chinalco is finally removed “king state losses” hat – August 27, half its 2015 annual report showed that during the reporting period the business income is 66.087 billion yuan, down 5.71% year on year. Net profit of 27.58 million yuan, compared with the profitability; Basic earnings per share 0.002 yuan.

The same period in 2014, chinalco’s loss is as high as 4.12 billion yuan. Chinalco a executives told the China business news “reporter said, since last October GeGongLin as chairman, is put forward to the goal of comprehensive turnround in 2015, and formulate the corresponding turnround measures, especially in the production cost in management cost was big decline over the same period last year.

So, in the current aluminum prices remain low, chinalco can completely out of trouble. To this, the reporter through together for China’s lanzhou branch, branch field survey found that the two companies are still continuing losses, and have begun to production, the company is considering to shunt the workers.

Branch cuts

High power costs and extremely low product prices have to push the whole electrolytic aluminum industry come to the point where it is very difficult.

On August 30, 2015, the reporter comes to located within the territory of yongdeng county, gansu province, the branch of China aluminium liancheng on-the-spot investigation, heard the most word is, “benefits this year is the worst over the years, the loss serious.”

Liancheng branch a asked not to be named, said an official with the prices falling, liancheng has been losing money in recent years, especially 2014 serious losses, the company in order to reduce losses or even shut down some of the electrolytic cell. He disclosed that in the first half of the total suspended 200 sets of series 200 ka electrolytic cell, shut down the 12 sets of 600 ka electrolytic cell.

Together, the source said the 200 ka electrolytic cell is almost closed; Shut down the reason is mainly because the 200 ka electrolysis series of heavy losses, cash flow losses of more than 1000 yuan per ton, so you must lose.

The source also said that due to heavy losses at present some workers have been in waiting state, liancheng branch has already begun to formulate corresponding personnel dismissal plan.

The same is loss of distance in liancheng aluminum plant chinalco lanzhou branch of dozens of kilometers away. The reporter understands, at present China lanzhou branch was not as profitable as chinalco, loss continues. Lanzhou branch of some workers told reporters that in 2014, lanzhou branch in order to ease the loss has also will be 25 200 ka electrolytic cell service. In 2015, lanzhou branch still loss-making, firms have to take a pay cut to reduce the loss.

Together for China’s lanzhou branch and branch of the loss of the status quo, lanzhou city development and reform commission, an official told reporters, in August, lanzhou has higher-level officials to research the two enterprises, and making a commitment to the two companies to support.

The development and reform commission, said in the first half of 2015, lanzhou branch of chalco cumulative losses of 228 million yuan, monthly loss of nearly 40 million yuan, tons of aluminum cash flow losses of 500 yuan. This makes the enterprise management under pressure.

Consistently profitable need checking

Although chinalco has realized the turnround in the first half of 2015, but the net profit is only 27.58 million yuan. A aluminum enterprise executives told reporters that at present market price is the lowest in 6 years, chinalco can therefore not loss has been rare.

Chinalco half annals, according to its turnaround since 2015, the leading product manufacturing costs were the main causes of reduced about 6% ~ 6% from the same period a year earlier, alumina product sales prices rise, and disposal of jiaozuo of a stake in a return of ten thousand, the company from loss to profit. But it is worth noting that chinalco’s main income less 4.005 billion yuan year-on-year, a drop of 5.71%, to this, chinalco explain for the trade sales decrease.

But if the deducting non-recurring profit and loss items, chinalco current still losses as high as 1 billion yuan of above.

Then in the second half of 2015 and 2015, chinalco is sustainable profitability, completely out of trouble.

, aluminum business clubs, analysts said the global economic downturn, a variety of construction materials, including aluminum, excess capacity. Aluminum serious excess capacity, in particular, the resulting prices fell sharply.

The analyst, in September 2014, before the Shanghai aluminum futures price is in 15000 yuan per ton, but then fell sharply, so far has been below 12000 yuan per ton, the level almost every enterprise has no profit space.

An aluminum company vice President, told reporters that since 2015, the whole aluminum enterprise product sales, especially civil aluminum demand fell sharply, which makes some enterprises in order to alleviate the pressure of the money had to losses of dumping, this has caused the price of aluminum to trample.

Is introduced, the vice President at the beginning of the year, chinalco had joint stock up with 13 aluminum companies, to suppress prices fell, but the final prices still fell below $12000 a tonne.

For have more than one subsidiary of aluminum corporation of China, to be continued downturn in prices under the environment of profit is not easy. It is understood that chinalco’s aluminium business, a subsidiary of a total of 11 (including 4 branches), and only a few in the electrolytic aluminium enterprises have self-provided power plant, but none area network.