CHINA HONGQIAO "GREEN TRANSITIONING" CAPACITY RELOCATION PROJECT
中国宏桥「绿色重塑」产能搬迁项目
CHINA HONGQIAO GROUP LIMITED
中国宏桥集团有限公司
Project Commitment to Sustainable Development Goals (SDGs)
INTRODUCTION
China Hongqiao has made remarkable achievements in environmental protection and has embarked on the path of standardized, scientific, information-based and professional management after years of efforts to renovate environmental protection facilities, eliminate outdated production capacity, as well as develop and introduce advanced production equipment. Among its diverse initiatives is the China Hongqiao "Green Transitioning" Capacity Relocation Project,– which involves transferring part of the company’s aluminum smelting capacity from Shandong Province to Yunnan Province.By leveraging local green hydropower resources and increasing the utilization of wind and solar power, this shift aims to reduce fossil fuel combustion and facilitate the company’s significant strategic and operational transformation under the guidance of the "dual carbon" goals. China Hongqiao firmly believes that “Green Transitioning” is the cornerstone for achieving carbon neutrality, and will also enable the company to achieve substantial carbon reduction and contribute to a more sustainable aluminum industry with a positive and industry-wide influence.
FRAMEWORK AND STRATEGY
A significant step towards achieving carbon peaking and carbon neutrality within China Hongqiao’s dual carbon framework, the "Green Transitioning" Capacity Relocation Project aligns closely with the company's long-term strategic blueprint. This initiative plays a pivotal role in advancing the company's strategic objectives.To fully harness renewable energy resources, China Hongqiao has proactively relocated part of its electrolytic aluminum production capacity to Yunnan Province, where it has established a green aluminum innovation industrial park. This move effectively ends the company's sole reliance on coal-fired power and creates a sustainable energy mix of hydropower, wind power, and solar energy, while significantly reducing fossil fuel combustion.
According to its strategic plan, the period from 2020 to 2030 marks the initial decarbonization phase. During this phase, China Hongqiao will earnestly implement the "Green Transitioning" Capacity Relocation Project, which particularly focuses on relocating its hydropower-based aluminum production base while expanding investments in the wind power and photovoltaic sectors. As a result, the energy structure in Shandong and Yunnan will be optimized, facilitating the company's gradual transition from fossil fuels to renewable energy.
ACHIEVEMENT AND IMPACT
The China Hongqiao "Green Transitioning" Capacity Relocation Project is a significant initiative in promoting low-carbon development by continuously optimizing energy structure. In response to the global trend of energy transformation and to optimize its energy structure, China Hongqiao transferred part of its electrolytic aluminum production capacity to Yunnan Wenshan Green Aluminum Innovation Industrial Park. The industrial park replaces traditional energy sources with green hydropower, fully utilizes hydropower resources, and promotes the deep integration of hydropower into the aluminum industry.The industrial park has established contracts with nearly 20 downstream aluminum processing and supporting enterprises, achieving 100% local conversion of hot molten aluminum metal, and over 80% local processing of aluminum alloys. China Hongqiao fully leverages its leading role in the industry chain, guiding all partners in the value chain to actively engage in carbon reduction and continuously promoting green and low-carbon development.
FUTURE DIRECTION
The China Hongqiao "Green Transitioning" Capacity Relocation Project is a strategic initiative born under the comprehensive long-term planning perspective. In the future, the company will further boost green development steadily by continuously optimizing energy structure, building green brands, developing a circular economy, expanding downstream processing, innovating production processes, and deepening domestic and international cooperation.China Hongqiao will also leverage its influence in the industry to continue investing in technological upgrades and green research and development, striving to fulfill the company’s green commitment and "dual carbon" goals, while leading the aluminum industry cluster towards green, low-carbon, and high-quality development.
China Hongqiao Group Limited (HK:01378) is one of the world’s leading aluminum producers. It was listed on the Main Board of the Hong Kong Stock Exchange in 2011 and is being included as a constituent stock by Hang Seng Indexes Co., Ltd. since 2022.
