Research on Solving Problems of Electrolytic Aluminum Industry in Henan Province

Under the background that the development of the electrolytic aluminum industry in the world has become increasingly large-scale, collectivized, and internationalized, the electrolytic aluminum industry in China has encountered difficulties in the entire industry, and has increasingly exposed the irrationality of the organizational structure, technical structure, and product structure of enterprises, which has seriously affected our country. The overall competitiveness of the electrolytic aluminum industry. Although electrolytic aluminum industry in Henan Province has a relatively strong industrial base, compared with the practice of electrolytic aluminum industry in developed countries, the outstanding problems are high cost (especially the cost of electricity), excess capacity, unreasonable product and organizational structure, The industry chain is short and the added value is low. The most fundamental problem is that the industrial chain is too short, the organizational structure is irrational, and the industrial chain that is integrated into globalization is at the low end of the value chain. There is no harmonious and innovative cooperative relationship between enterprises. Therefore, it is impossible to offset the relatively high cost of electricity prices from profits, and it is impossible to consume relatively surplus production capacity from the intensive processing. The lagging problem of optimization and integration of industrial chains has seriously affected the overall competitiveness of the electrolytic aluminum industry in China and Henan Province; therefore, building a local industrial chain and integrating it into global value chains is an effective way to solve the dilemma of electrolytic aluminum industry in Henan Province.

First, based on the local industry chain construction solution

As China's economy has entered a new normal for development, changing the mode of growth and development model has become one of the most urgent tasks. Seriously consider the characteristics and trends of the new round of industrial restructuring and upgrading, explore the harmonious and highly efficient technological development and collaborative innovation development mechanism in the upstream and downstream of the local industrial chain, drive innovation, quality first, green development, structural optimization, and talent-based development. The improvement, extension and upgrading of the industrial chain are the main tasks of this round of industrial upgrading.

(I) The whole industrial chain and cluster development of electrolytic aluminum industry

At present, the development status of the electrolytic aluminum industry in Henan Province is that large quantities of low-value aluminum materials are exported, while high-end aluminum materials rely on imports. Under the background of the rise of international trade protectionism and the strengthening of the industry's development of energy elements, the aluminum industry is urgently required to accelerate the transformation of its development mode and accelerate its transformation and upgrading. At present, the world bauxite is controlled by large companies such as Alcoa and Alcan, and its resource control and influence on international trade are increasing. The electrolytic aluminum industry is a resource-intensive industry with high energy consumption, large pollution, and low profits. Selling this phase alone is contrary to the country’s current efforts to build a resource-conserving, environmentally friendly society. Therefore, the entire industry chain should be developed, to avoid focusing on local links only to sell resources, and to change resources from intensive to labor-intensive, technology-intensive or capital-intensive. Therefore, this project advocates that Henan Province should vigorously develop the aluminum processing industry based on bauxite and aluminum self-sufficiency. The capacity of electrolytic aluminum is compressed, and resources are reserved for future generations. The capacity of electrolytic aluminum is subject to the support of downstream industries. Therefore, at present, electrolytic aluminum enterprises in Henan Province must extend the industrial chain along the basic industrial chain of bauxite-aluminum-aluminum-electrolytic aluminum, recycled aluminum-aluminum alloy and aluminum-processed materials-aluminum deep-processing products, and vigorously develop the aluminum processing industry. Expansion of vertical integration will enable the electrolytic aluminum industry to develop along both upstream and downstream directions. To extend upstream, reduce the production cost of electrolytic aluminum, that is to say, lower the price of alumina relative to electrolytic aluminum; to extend downstream, orderly advance the development of the aluminum deep processing industry and increase the added value of the products of the company.

In terms of space layout, if the layout of the industry's internal space is scattered, it will increase the production and handling costs intangibly. Therefore, it is recommended to strengthen the close connection and space concentration within the industrial chain, and shorten the spatial distance between electrolytic aluminum and aluminum processing, and adopt aluminum water. The direct supply of aluminum processing plants focuses on the layout of the aluminum industry. We must also strengthen the intensive nature of electrolytic aluminum and other additional industries to form industrial clusters.

(II) The aluminum industry extends to high-end related industries

For the electrolytic aluminum industry in Henan Province, it is possible to exploit resources and market advantages in several high-growth industry sectors and strive to improve the basic industries of bauxite - alumina - electrolytic aluminum and recycled aluminum - aluminum alloys and aluminum processing materials - aluminum deep processing products. The chain focuses on the upgrade of the industrial chain in rail transit aluminum, aerospace aluminum, automobile alloys, household electrical appliances aluminum and decorative aluminum, printed aluminum, and information industry materials. details as follows:

1. Aluminum industrial chain extends to the transportation industry

In addition to the traditional aluminum materials, over the past few years, under the guidance of policies to strengthen energy-saving and emission-reduction of transportation equipment by various governments, lightweight, high-performance, recyclable aluminum alloy materials have demonstrated their proper comparison in the transportation equipment industry. Advantages have been widely used in the transportation industry such as automobiles, rail vehicles, ships, aviation, etc., showing the good use value and social benefits of aluminum alloy materials. For example: 1) Develop casting aluminum and aluminum alloys. As a transportation tool mainly used for automobiles, motorcycles, etc., followed by electronics, electrical appliances, home appliances and hardware, in recent years, it has also begun to be widely used in aerospace, machinery manufacturing and other industries. With the rapid development of the domestic automobile industry and the railway locomotive industry, the construction of the railway network brought by the Belt and Road will bring about a huge market for cast aluminum and aluminum alloys; and 2) vigorously expanding new alloy materials for different uses. For example, a high-pressure die-cast alloy with excellent mechanical properties and high toughness in the die-casting state, a new type of casting and die-casting aluminum alloy with various rare earth elements added, and a fiber or particle-reinforced cast aluminum alloy market are very large.

2. Aluminum Industry Industry Chain Extends to Building Decoration Industry

The aluminum industry chain extends to the building material decoration industry. In addition to the traditional aluminum products, the company is firmly shifting from building aluminum profiles to high-end energy-saving and home improvement aluminum profiles. The key development has strong corrosion resistance and high surface corrosion resistance. Effectively prevent acid, alkali and salt erosion of electrophoresis aluminum profiles (prevent weathering); increase the production capacity of high-end products for building aluminum profiles, improve product types, quantity, accelerate product structure adjustment to meet market demand; strive to develop foam aluminum as sound-absorbing materials , construction materials, structural materials, electromagnetic shielding materials and a series of applications, closely follow the introduction and application of new technologies such as ceramic color aluminum and other third-generation new construction decoration materials.

3, aluminum industry chain extends to the printing and packaging industry

Grasp the opportunities for aluminum packaging market for metal packaging, vigorously expand the development and application of aluminum in the packaging and container industry, especially in the fields of pharmaceuticals, pesticides and other packaging; make full use of aluminum foil packaging to meet the requirements of easy recycling, environmental protection, water resistance, and resistance The requirements of high temperature and other aspects, and strive to expand the packaging of aluminum foil in the high-end food, and the relatively high heat resistance requirements of the new application areas; to achieve product upgrading, and actively develop the vacuum aluminum paper, lead environmental protection, anti-counterfeiting development trend.

(III) Formulate the Aluminum Industry Technology Roadmap

As a technology integration and strategic planning management tool, the industrial technology roadmap has been widely used in many fields in Europe and the United States and other developed countries. The United States established the US aluminum industry technology roadmap in 1997 and 2003 respectively. Canada established the aluminum industry technology roadmap in 2000 and 2006. The aluminum industry road maps of the two countries have played a very good role in the joint optimization of resources for joint government departments, aluminum producers, equipment suppliers, universities and research institutions. On November 09, 2008, China's first aluminum industry technology roadmap - "Guangdong Province Aluminum Industry Technology Roadmap" was released in Foshan, Guangdong Province on the 9th and identified a number of key generic technology projects. Henan Province also needs to take market demand as the driving force, through the analysis of market demand, industrial goals and technical barriers, combined with the status quo of the industry's technological development, planning a forward-looking and operability for the aluminum industry's R&D project in Henan Province. Technology management tools to solve the company's key common technologies.

(IV) Joint reorganization of coal-fired aluminum enterprises to reduce production costs

Based on the experience in the development of foreign electrolytic aluminum industry, it is suggested that the electrolytic aluminum industry in Henan Province should strengthen the joint, merger and asset reorganization of aluminum production enterprises, establish a group company with backbone enterprises as the core, and promote the grouping and internationalization of aluminum production enterprises. The formation of the electrolytic aluminum industry economies of scale. It is necessary to actively promote the integration of the coal-electricity-aluminum industrial chain, and even to expand the integration of coal-electricity-aluminum-carbon-graphite and other industrial chains. For example, Luoyang Wanji Aluminum Aluminum foil has formed a "coal power - electrolytic aluminum - aluminum processing" of the entire industry chain. In addition, cooperation with graphite companies and sodium metal companies has complementary advantages. In this way, the expansion of the industrial chain will increase the value chain and increase the added value of electrolytic aluminum.

Learn from the experience of foreign countries in reducing electricity prices, develop nuclear power, and build atomic power plants. Nuclear power is clean, pollution-free and renewable, and it is a good alternative to coal power generation. The cost of foreign electrolytic aluminum accounts for only 25%, such as the United Kingdom, the Netherlands and other countries, they develop the electrolytic aluminum industry not only rely on coal power generation, but also rely on nuclear power, so it will save a large part of the investment.

(5) Grouping, diversification and multi-location development

World Aluminum Corporation develops in the direction of diversification, multi-location, multi-metals, and internationalization. Henan Aluminum Group can be grouped (such as aluminum or aluminum electrolytic + aluminum processing integration, plus copper or nickel production or gradually into other rare metals industries such as titanium, chromium, etc., rare earth production), internationalization (shares of other international Well-known companies form joint ventures, or joint ventures, occupying one of the links in the global value chain, such as parts production. Strive to obtain the leading advantages of aluminum industry and other leading copper business in China, technical and operating advantages, and have leading technologies in several fields, especially ensuring that core technologies such as electrolytic aluminum are at the leading international level.

(6) Reasonable choice of industrial portfolio to enhance the operation and management capabilities

While actively grasping the opportunities in the aluminum mining industry, industry mix, operational improvement and management capabilities have increasingly become the key elements for the success of the global aluminum company. At present, the global metal and minerals industry will continue to maintain stable growth. Upstream mining is still the most attractive link in the value chain. Market uncertainty and volatility increase (such as trade, taxation, energy-saving emission reduction policy trends), making the rational selection and configuration of industrial portfolio is very important. With the increasing competition for resource acquisition and the continuous decline in resource quality, the average cost of the industry continues to rise, and operational capability is increasingly becoming one of the core sources of competitive advantage of the company. Therefore, the electrolytic aluminum industry in Henan should choose a reasonable industrial portfolio, focus on the core varieties, optimize the layout of the value chain, assets, and regions, and achieve sustainable value creation and profit returns. Focus on operational improvement and improvement of asset efficiency. In the pursuit of structural quality assets, increase cost competitiveness. Faced with uncertainties in many aspects, such as the market and policies, more emphasis is placed on the ability of companies to respond to market changes and their ability to operate internationally, especially core capabilities such as capital allocation, risk management, and external cooperation.

Second, based on the integration of global value chain upgrade ideas

The gradual deepening of globalization allows companies to think about their own development strategies on a global scale. Since the 1980s, developing countries have stepped up market liberalization, foreign trade, and opening up to the outside world. This has also provided a political environment for companies to be able to extend their tentacles into the world. However, how to join the global market in order to maintain the sustainable growth of enterprises or regions is a key issue. Some scholars believe that there are two ways to insert the global economy: low-end roads and high-end roads. The upgrade is an innovative process to increase the ability to acquire value in the global value chain. It is a necessary condition for companies to take the high road and enhance their competitiveness. The key to innovation in global value chains is innovation. It includes four different forms: product innovation, process innovation, function innovation, and departmental innovation. These innovations are relative to the development and improvement of the company's previous products and processes, enabling companies to achieve international dynamic indicators.

(I) Helping Enterprises Realize Process Upgrades

The process upgrade is to reorganize the production system and introduce advanced technology to make the production process more efficient and reduce production costs. Electrolytic aluminum enterprises should be encouraged to carry out technological innovations, such as the development of large or super large-scale efficient, intelligent aluminum electrolytic cells. Promote some corporate restructuring including upstream and downstream restructuring. We will increase the development and promotion of new energy-saving and emission-reduction technologies, and actively promote the policy of pricing electricity based on the characteristics of electrolytic aluminum. At the same time, the regional government must actively coordinate with the local financial sector to provide guarantee loans for enterprises, or establish public construction funds, and guide enterprises to carry out production reorganization, technological transformation, or the introduction of advanced technologies to achieve more productive process upgrades.

(II) Encouraging enterprises to upgrade their products

The emergence of China as a global economic force has affected the aluminum industry's consumption, demand, and production and supply. Due to the advancement of urbanization, the Chinese aluminum industry market is more focused on construction and construction; it is necessary to increase the research, development, and production of new high-precision aluminum processing products that are in short supply in China in response to market demand. To this end, it is recommended that government departments take the form of awards and subsidies to provide financial support to key electrolytic aluminum enterprises, coordinate relevant financial special funds, and give priority to supporting the independent innovation of electrolytic aluminum enterprises. To strengthen the establishment of institutional networks in the region, such as the establishment of enterprise development technology centers, service centers, professional training schools, and the establishment of research universities and national laboratories and other scientific research institutions, to provide an exchange platform for the close interaction of network members within and outside the cluster to stimulate the network The occurrence of innovation. Encourage companies to invest in R&D or establish public R&D departments locally, develop new products, implement product upgrades, formulate favorable talent introduction policies, improve local living and working environment, formulate industry norms, and attract high-quality talents and management talents to settle down.

(III) Promoting Enterprise Functional Upgrade

Based on technological innovation and product innovation, it is necessary to actively help electrolytic aluminum companies to open international markets, obtain qualifications for participating in domestic and international trade affairs, expand international market share, increase their position in global value chains, and fully integrate them into globalization. By clearing the international connection channels, companies can win the opportunity to learn from foreign experiences, discover international market information, purchase new products, and imitate innovation. Efforts have been made to achieve international certification, improve product quality to meet international standards, and promote the upgrading of local intermediate input suppliers. Encourage companies to make full use of the surrounding suppliers, do their best to focus on the highest value chain in the global value chain, and outsource low-value increase activities to enhance the company's position in the global corporate value chain and achieve functional upgrading.

(D) The leader of the attraction chain enters the cluster

Attracting intermediate input buyers to OEM small electrolytic aluminum companies or attracting trading companies with broad market channels to enter this area so that companies can embed several purchaser-driven value chains at the same time to reduce Over-reliance on the buyer. Create conditions to enable powerful electrolytic aluminum companies to be embedded in producer-driven value chains centered on large multinational corporations, to become one of their global suppliers, or to form joint ventures with them, and to accept advanced technologies in a “half-level” governance approach. The technology spills over and spreads to other companies in the area. Improve the quality of enterprise products and the ability of companies to enter the market's international market and form their own stable export network. Help and encourage companies to cultivate new markets and new value chains, and when conditions are ripe, turn to relevant higher value-added departments to achieve sector upgrading or chain upgrading.

(E) Encouraging enterprises to identify their own "strategic links"

Electrolytic aluminum enterprises in Henan Province should meticulously divide all aspects of the global value chain of their companies, conduct in-depth research on the value sources, value composition, and value distribution of each value chain of the industry value chain, understand the status of the entry barriers and value chain controls in each link, and combine their own Advantages, accurately positioning itself in the strategic link in the global value chain.