Asian Metal visits Chongqing Sigma Metals INC. and Chongqing Shunbo Aluminum Alloy

On November 28-29, Asian Metal visited Chongqing Sigma Metals INC. and Chongqing Shunbo Aluminum Alloy Co., Ltd, which are two largest secondary aluminum alloy ingot producers in Chongqing. The two plants both just moved to new locations and some of the infrastructures are still under construction.

On November 28,2012,senior analyst Friday Gao and analyst Nancy Zhang from Asian Metal firstly visited Chongqing Sigma Metals INC., the branch of Sigma Metals Group, who also has branches in Shanghai, Zhangzhou, Rizhao and Changchun. Mr. Cai Jianping, vice manager of materials department of the company and Mr. Xie Shuang, the vice manager of purchasing department, shared their opinions of great pressures in the whole secondary aluminum alloy ingot industry under the increasing capacities and production decrease of Japanese motors plants this year. Mr. Cai also thought that the industry is facing integrations and most plants are going thought tough times in the first period.

The plant just moved to Chongqing Gangqiao Industrial Park in Yongchuan Zone, from Chonqing Da'an Industrial Park, so some office buildings are still under construction. The plant has a designed aluminum alloy capacity of 20,000tpm, and the current output is 3,000-4,000tpm as they operate only one set of equipment for now.

On November 29, Asian Metal visited Chongqing Shunbo Aluminum Alloy Co., Ltd, located in Caojie Continuation Industry Area, Hechuan Zone of Chongqing. The company also just moved from Bicheng Industry Zone of Bishan. Mr. Zhu Shengde, the vice general manager of the company and Mr. Zuo Lei, the supervisor of purchasing department of foreign trade, introduced the development history of the company and the outlook in details. The company also has branches in Guangdong and Fuling Zone of Chongqing, and the latter cooperates with one aluminum smelting company locally.

Mr. Zhu talked a lot about the current secondary aluminum alloy ingot industry and held relatively optimistic attitudes towards the future market. However, he still thought there were some blocks in the market and hoped relevant government and institutions will do well in the macro control, since sometimes the economic policies differ too much and plants do not know how to adapt to.

The company has a designed capacity of 150,000tpm, and also runs only one set of equipment for the present, with output of 3,000-4,000tpm.