Independent innovation and green environmental protection are still important development directions for the aluminum processing industry

On November 4, Fan Shunke, deputy secretary of the Party Committee of the China Nonferrous Metals Industry Association and chairman of the China Non-Ferrous Metals Processing Industry Association, pointed out at the 8th Guangdong Aluminum Processing Technology (International) Seminar that in recent years, under the joint efforts of the entire industry , China's aluminum processing industry has achieved world-renowned achievements, with output and consumption ranking first in the world for 11 consecutive years. In 2016, the output of aluminum processing materials reached 35.20 million tons, which is viewed in terms of industrial scale, industry standards, quality, technology, and equipment. China is already a veritable aluminum processing country, and it has become a powerful country to some extent. In the future, China's aluminum processing industry should focus on strengthening investment in R&D and improve its independent innovation capability. At the same time, environmental protection and recycling are still important development directions for the industry.

The main features of the aluminum processing industry

Towards high-end development, the equipment level is globally leading. As of 2016, China has more aluminum processing equipment than other countries. In terms of extrusion materials, 181 sets of extrusion presses with a capacity of over 45 mega-tons are being equipped, of which the maximum tonnage is 225 mega-tons, which is unique in the country and unique in the world. For rolling materials, 19 production lines of 1+3 to 1+5 hot rolling heat up production lines were put into production; 12 production lines for 1+1 preheating and light rolling were produced, of which the largest width of 4500 mm was the highest in Asia; 2000 mm There are dozens of wide width rolling mills with a maximum width of 2350 mm, which is the widest in the world.

Product standards and quality are fully in line with international standards, and gradually break through the occupation of the international market. The major reference standards for aluminum in China adopt European, American and Japanese standards, which are in line with international standards. China GB-T5237 aluminum alloy building profiles national standards and English version have been recognized and adopted by many countries in the world. The quality of aluminum products in China has reached the international level and has entered the international market. It has been the world’s largest exporter of aluminum products for seven years in a row. Exports account for about 20% of the total global aluminum output. In 2016, it exported a total of 4.6 million tons of aluminum, including 1.64 million tons of plates, 1.3 million tons of extruded materials, 1.08 million tons of aluminum foil, and 30,000 tons of aluminum powder and wire rods.

Trade frictions have become normal. With the increase in the export volume of China's aluminum processing products, the increase in competitiveness, the rise of international trade protectionism, and the increase in trade frictions, a few countries have even frequently conducted administrative investigations on Chinese aluminum products and filed double counter- lawsuits. After the United States conducted 32 competition investigations on China's aluminum industry last year, it launched a double counter investigation on aluminum foil this year. On October 27, the U.S. Department of Commerce announced the preliminary findings of the anti-dumping investigation against aluminum foil in China and decided to impose an export tariff of 96.8%~162.2% on aluminum foil imported from China. The final decision was announced in February 2018.

The development of the industry presents the characteristics of industrial clusters, large-scale enterprises, specialized production, and customized products. After years of development, in addition to Chinese aluminum companies, private enterprises have become the main force in the industry.

Product development mechanization. Several aluminum processing industry clusters have gradually formed in various parts of the country, such as the Guangdong Nanhai, Linyi aluminum alloy construction platform in Shandong, the aluminum strip in Henan Gongyi, the industrial profiles in Liaoyang, Liaoning, Binzhou, Shandong, Hollingrad, Inner Mongolia, and Wucai Bay in Xinjiang. A new model focusing on the centralized layout of electrolytic aluminum plants is being formed.

Aluminum processing companies have grown in size. The production capacity of many enterprises has reached 500,000 tons per year, and some even reached the scale of 1 million tons per year. For example, Chinalco, Zhongwang Group, Nanshan Aluminum, Fenglu Aluminum, Xingfa Aluminum, Huajian Aluminum And other companies.

Aluminum processing production specialization. The industry's multiple development models coexist, and more and more companies pay more attention to market segments. For example, Jianmei Aluminium produces high-end aluminum profiles; Liaocheng Wanhe produces heat-exchange systems with multi-empty flat tubes, which has a comparatively high domestic market share. Gao; Shanghai Huafeng mainly produces brazed composite materials. These enterprises are moderate in scale, but they all have a large share and have significant benefits.

Product customization. Processing companies such as Liaoning Zhongwang and Shandong Junlin have changed from supply car body platforms to rail vehicles. Hunan Liantong cooperates with logistics companies to produce lightweight high-end trucks, and also cooperates with PetroChina and other companies to produce light-weight high-end tankers. Producers are transformed into total solution providers. Just as aluminum profiles have become an overall supplier of aluminum doors and windows, customization of products is becoming more and more popular.

The current core issues in the industry

Basic research and innovation. At present, China's aluminum processing industry has developed from a catch-up foreign advanced level to a development stage parallel with foreign countries. However, industry technology research and independent innovation capabilities still have shortcomings, such as the development of aluminum alloy core grades. Alcoa registered 512 aluminum alloys, while China registered only three.

The lack of attention to downstream needs has led to insufficient development and serious product homogeneity. In the past few years, the large-area aluminum-based cans for printing, which are being sought after by the market, have been overcapacity, and there has been vicious competition. According to statistics, as of now, the annual production capacity of aluminum cans in China has exceeded 1.5 million tons, homogenization and actual production are only about 800,000 tons, and the capacity utilization rate is only about 50%. Homogenization has led to intense market competition. Processing fees fell and then fell, such as can body processing fees from the previous few years of 9,000 yuan per ton to 4,000 yuan per ton.

The integration of entity companies and capital markets is not close enough. According to rough statistics, at present, there are only a dozen listed independent aluminum processing companies in China and abroad, which is relatively small compared to the size of the processing industry. Aluminum processing companies have failed to capitalize on the strength of the capital market to achieve their own leapfrog development. The listed companies also failed to give full play to the market's role in boosting the development of enterprises. This will be the next step in the direction of China's aluminum processing industry.

China's aluminum processing industry in the future direction of development

First, increase R&D investment and improve independent innovation capabilities. The aluminum processing industry in China has already gone through the development phase of tracking imitation, digestion and absorption, and re-innovation. The industry has now entered a phase of parallel development with foreign developed countries, and some companies have even become leaders. In the next step, the industry should further increase its research investment and improve its independent innovation capabilities, and strive to build 8 to 10 world-class companies with core competitiveness within 3 to 5 years.

Second, we must pay attention to environmental health, safety, and recycling. Aluminum is a green product and aluminum should play a greater role in creating a better life. Aluminium processing companies should continuously improve and reduce the level of pollutants and waste discharged from aluminum surface treatment to minimize damage to nature and human health, so that the concept of green is deeply rooted. At the same time, we will further raise the awareness of safe production operations, increase safety production protection measures, attach importance to research on the safe production cycle of products, and increase recycling efficiency.

Third, rapid development with the help of capital markets. Aluminium processing companies must be actively planning for listing, make full use of the capital market, increase corporate reputation, increase financing channels, reduce financing costs, expand cooperation partners and development opportunities, and focus on promoting mergers and acquisitions and establishing a professional The highly sensitive talent team in the capital market scientifically and effectively used futures tools to resolve business risks and achieve leapfrog development.

Fourth, we should grasp the opportunities of the Belt and Road initiative and implement the strategy of going abroad. The One Belt One Road Initiative has provided China's aluminum processing companies with a good opportunity to go global. It can both extend the industrial chain and open up new markets before they can effectively deal with trade frictions in other countries. We must use the One Belt One Road initiative.

China’s socialism has entered a new era. The main contradiction has been transformed into the contradiction between the people’s ever-growing needs for a better life and unbalanced and uneven development. Looking ahead, the aluminum processing industry must implement the concept of innovation, coordination, green, openness, and shared development. We must adhere to quality first and efficiency. We must focus on supply-side structural reforms to meet and meet the people’s growing good life. China There is still great promise.