The plant, with design capacity of 500,000 units/yr, will be commissioned in September. This will raise Pomlead's total capacity to 1.5mn units/yr from 1mn units/yr, in response to higher demand for lightweight and energy-saving materials from the automotive industry.
The company has invested 1bn yuan ($144mn) to build another four production lines with a combined capacity of 2mn units/yr. Two of the new lines are scheduled to be completed at the end of this year and the remaining two in 2021. This will take Pomlead's aluminium wheel hub capacity to 3.5mn units/yr by 2021.
China's auto sales rose in July for a fourth consecutive month as the country's economy recovered from the Covid-19 pandemic. Auto sales increased to 2.11mn units in July, up by 16.4pc from a year earlier, data from China's automotive manufacturers association (CAAM) show.
Rising auto sales are likely to boost demand for metal feedstocks, such as aluminium, magnesium, silicon and steel.
Source: argusmedia.com
