Russian Vi Holding Group Henan Aluminum Processing Project Put into Production in 2015

Russia's Vi Holding Industrial Group plans to complete the construction of a vertically integrated Yulian integrated facility in Henan Province in the second half of 2015 and put it into full operation. The facility will be used for hot-rolled and cold-rolled aluminum alloys with a production capacity of 600,000 yuan each. Tons and 400,000 tons.

The start of the Yulian plant will mark the end of the project. The project was started by ViHolding in 2006 and aims to build a group of Chinese aluminum deep processing companies. The total investment now reaches US$3.3 billion, including US$1.2 billion of shareholder investment. The remaining investment funds are financed through China’s bank loans and reinvestment proceeds.

At an intergovernmental meeting held in Sochi in October, Vice-Premier Wang Yang delivered a speech saying that this investment project in Russia deployed by China is unprecedented.

Vitaliy Machitski, founder and president of Vi Holding Group, said that after the start of the project, Yulian's integrated facilities will occupy a 20% share of China's aluminum production market in a series of high-tech market segments - this will become the world's largest aluminum production facility.

Vi Holding's comprehensive facility in China is currently capable of producing about 800,000 tons of highly refined aluminum, including 600,000 tons of hot rolled coil, 60,000 tons of flat rolled steel and 150,000 tons of aluminum anode. The facility is capable of producing 750,000 tons of primary aluminum for refining and 420,000 tons of aluminum castings.

A vertically integrated integrated production facility has been completed. Production projects include coal production, power generation, prebaked anodes, electrolytic aluminum and aluminum alloy production, and deep processing of primary aluminum to make it a high-tech product. ViHolding’s management stated that Yulian’s comprehensive facility is not an aluminum smelter but is a facility that uses aluminum to produce high-tech products.

The facility is powered by a power plant with a total generating capacity of 1,500 megawatts. The power plant's fuel is supplied by the company's nine surrounding mines, with proven reserves of 150 million tons. Vi Holding employs 16,000 people in China.

This comprehensive facility is divided into two industrial parks in Gongyi City and Linzhou City. The facility is part of the Henan Yulian Energy Group, Vimetco holds a 97% stake in the group, and Vimetco is controlled by Vi Holding.

So far, Vi Holding has no support for the development of this project. According to China's policy of encouraging the formation of high-tech integrated production, Vi Holding is expected to receive the support of the Chinese government.

Vi Holding management stated. The project will reduce the dependence of the Chinese market on imported products in many subdivided areas: aluminum cans, aluminum alloy lithography (CTP, CNCP), high-tech aluminum foil blanks, aluminum for the automotive industry, and others that require high-precision alloys. The product.

Zhang Deguang, chairman of the China International Research Foundation, said: "The Yulian investment project has entered the list of top 500 Chinese high-tech companies. This project will be an outstanding example of our deepening cooperation."

At the intergovernmental meeting held in Sochi, Wang Yang stated that the Chinese government is “working with the Russian side to discuss issues related to this Vi Holding project” and will seek solutions for the problems faced by the Chinese metallurgical enterprises.

As early as before Vi Holding joined, Yulian Group had acquired the status of a foreign joint venture: In 2003, Oriental Patron, controlled by Hong Kong investors Zhang Gaobo and Zhang Zhiping, purchased the shares of Yulian Group. Vi Holding joined the project in 2006. Dongying Financial Group currently holds a 10% stake in Vimetco.

In addition to investing in aluminum, Vi Holding is involved in the development of the Darwendale platinum deposit in Zimbabwe, one of the largest platinum deposits in the world. The company also owns real estate development projects in Moscow.