Shandong Nanshan Aluminum Co. Ltd. Announces a 25‑Million Tonne Electrolytic Aluminum Project in Indonesia

Shandong Nanshan Aluminum Co., Ltd. (stock code SH600219) disclosed on 19 January 2026 that it will invest approximately 30.56 billion RMB (about 4.37 USD million) to build a 250,000‑tonne electrolytic aluminium plant in Indonesia. The project will be established through a joint venture between the company’s international holding arm and its overseas subsidiaries, Winner Asia Investment Holding Limited and HongKongPrimeAluminiumInvestment Limited, which will form a new project subsidiary, PT HEAI, under the Indonesian Bintan Industrial Park.

Purpose of the Investment

The company stated that the new plant will:

  • reduce electrolytic aluminium production costs by leveraging local alumina resources and lower energy expenses in the Bintan Industrial Park;
  • create a scalable competitive advantage in the global aluminium market;
  • steady the company’s profitability as demand for high‑precision aluminium products rises.

The investment aligns with Shandong Nanshan Aluminium’s strategy to expand its overseas production capacity. The Bintan site already hosts alumina production; the electrolytic plant will directly convert this alumina into aluminium, cutting transportation and energy costs.

Project Details

  • Annual production capacity: 250,000 tons of electrolytic aluminium;
  • Estimated construction period: 2 years;
  • Total investment: 30.56 billion RMB, financed through a mix of the company’s own funds and bank loans;
  • Projected output post‑completion: The Bintan park’s electrolytic aluminium capacity could reach 500,000 tons once the new plant is operational.

Context and Strategic Implications

Shandong Nanshan Aluminium has shown strong growth in its overseas operations. In the third quarter of 2025, the company reported a 62.21 billion RMB net cash flow from operating activities, a 32.09 % increase year‑on‑year, largely driven by revenue from Indonesia’s alumina business. The new electrolytic aluminium project is expected to reinforce this momentum by deepening the company’s value chain integration in Southeast Asia.

The announcement coincides with a broader trend of expansion in the aluminium industry, as global demand for lightweight, high‑performance materials continues to rise. By establishing a large‑scale production base in Indonesia, Shandong Nanshan Aluminium positions itself to benefit from regional market growth and to secure a more stable supply of raw materials.

Market Reaction

Following the announcement, Shandong Nanshan Aluminium’s share price stood at 6.14 CNY on the Shanghai Stock Exchange, with a market capitalization of approximately 705.10 billion CNY. The company’s price‑earnings ratio was reported at 13.42. Analysts note that while the capital outlay is significant, the long‑term cost‑saving and capacity‑expansion benefits are likely to support the company’s earnings trajectory.

All figures and statements are taken from the official announcement and related financial reports released by Shandong Nanshan Aluminum Co., Ltd.