(Yicai) Jan. 20 -- Shares of Nanshan Aluminum advanced after the Chinese aluminum product maker said it plans to expand its production capacity of electrolytic aluminum in Indonesia.

Nanshan Aluminum [SHA: 600219] closed 7.5 percent up at CNY6.60 (95 US cents) today. The Shanghai Composite Index remained unchanged.

Nanshan Aluminum will invest USD437 million to build an electrolytic aluminum plant with an annual production capacity of 250,000 tons in the Bintan Industrial Estate to mainly supply raw materials to downstream aluminum processing enterprises, the Shandong province-based company announced yesterday. Construction is expected to last two years.

The project, which will leverage Indonesia's abundant mineral resources and cost advantages in production, will allow Nanshan Aluminum to better respond to local market demands, enhance the resilience and flexibility of its overseas operations, and improve its profit margins, the firm noted.

This is the second 250,000-ton electrolytic aluminum factory that Nanshan Aluminum has announced it would build. The first one, unveiled in April 2023, is under construction in the Bintan Industrial Estate, expected to be completed and put into operation by June.

Indonesia is rich in bauxite resources. Nanshan Aluminum holds bauxite mining rights in Indonesia's Bintan Island through its subsidiary Global Aluminium International, with an annual alumina production capacity of four million tons in the Bintan Industrial Estate, making it a leading supplier in Southeast Asia.

Nanshan Aluminum is a high-end aluminum product supplier whose business covers all segments of the supply chain. In 2024, it produced nearly 3.77 million tons of alumina and 678,200 tons of electrolytic aluminum. Its clients include Boeing, Airbus, Rolls-Royce, Safran, BMW Group, Volkswagen Group, Tesla, and General Motors.

Nanshan Aluminum's overseas revenue surged 31 percent to CNY17.8 billion (USD2.6 billion) in 2024 from the previous year, accounting for about 53 percent of the company's total annual revenue.

Editor: Futura Costaglione