China's Shandong Nanshan to commence electrolytic aluminium plant in Indonesia

Shandong Nanshan Aluminium headquartered at northeast China’s Longkou City, intends to invest $878 million (RMB 6.07 billion) to construct an electrolytic aluminium factory at its Indonesian production site located in the Galang Batang Special Economic Zone. The facility will manufacture and distribute aluminium products, supporting Nanshan’s growth plans.

The company primarily provides alumina powder, electrolytic aluminium, alloy ingots, aluminium profiles, plates, hot-rolled products, cold-rolled products and aluminium foils worldwide.

Recently, it has started a new factory in which the company will use electrolytic aluminium which is mostly used in the power sector. The Chinese firm plans to manufacture aluminium ingots at the facility, targeting the South Asian and Association of Southeast Asian Nations markets. The production capacity of the plant is expected to reach 250,000 t annually.

The company’s client list includes multinationals such as Apple, BMW, Boeing, General Motors, Huawei, Rolls-Royce, Samsung, and Volkswagen. It finalised its $5 billion aluminium complex in Bintan Nanshan Industrial Park, Indonesia, in 2016 and has since raised its investment in the facility.

The company has announced plans to construct a carbon plant that can produce up to 260,000 t/year, in addition to its ingot factory. The project will also include the construction of public amenities like docks and reservoirs.

According to the company, the entire project is expected to have an after-tax payback period of less than eight-and-a-half years.

The commencement date for the construction work of the project has not been revealed at the time of publishing this report. However, it is anticipated that the project will be operational sometime between April and July of 2026.

Note: This article has been published in accordance with an article exchange agreement between Alcircle and SteelMint.