Zhongfu Industrial announces that the company expects a net loss of 180 million yuan ($28.6 million) in 2017. Affected by the winter cuts policy, the company curtailed an aluminum smelting capacity of 225,000 tons and an anode production capacity of 82,500 tons for maintenance during the heating season. Coal mining business also suffered serious losses.
Located in Gongyi, Henan Province, Zhongfu Industrial is a large aluminum enterprise that has developed a business chain of coal-energy-aluminum-fabrication over the past decade. Its costs, however, are still higher than the national average. The company currently operates an anode plant with an annual capacity of 150,000 tons, two smelters with a total annual output of 750,000 tons, a hot rolling mill of 600,000 tons, a cold rolling mill of 450,000 tons, as well as a coal mine and a captive thermal plant.
For more related policy analysis, please refer to the following articles：
The Promised Road: Where is China’s Aluminium Industry Headed? (Part 1)
The Promised Road: Implementing Aluminium Capacity Cuts (Part 2)
The Promised Road: China’s Aluminum Industry in 2018 (Part 3)