The Chinese aluminium manufacturing industry is confronting the limits of domestic production capacity and is therefore strengthening its position in the global supply chain by building and operating smelters abroad, including Indonesia and Kazakhstan. The companies are seeking both local raw material sourcing and cost reduction, which also improves their export competitiveness.
Indonesia offers attractive investment sites for aluminium smelting with abundant bauxite resources and low labour costs. In Kazakhstan, recent participation of several large enterprises has increased local production capacity. These investment cases are interpreted as strategic decisions to address the supply chain deficiencies that arose domestically.
Strategically, establishing overseas smelters secures raw material supplies and expands access to export markets. Moreover, the diffusion of local production processes and quality control technologies improves overall efficiency across the global supply chain. This movement plays a key role in creating a sustainable growth base for China’s aluminium industry.
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