Alumina
This business turns bauxite into alumina, the main raw material used to make aluminum metal.
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Aluminum Corporation of China Ltd., often called Chalco, is one of China’s main aluminum producers. It mines bauxite, refines it into alumina, and then smelts alumina into primary aluminum and related metal products. It also sells carbon products and other materials used in the aluminum-making process, so it sits at several key points in the aluminum supply chain rather than only one step.
Its main customers are industrial buyers that need aluminum as a basic input, including makers of transportation equipment, construction materials, electrical products, packaging, and machinery. The company makes money mainly by selling alumina, primary aluminum, and other metal products into these industrial markets. Because its business depends on raw materials and heavy processing, its results are closely tied to demand from manufacturers and to prices for aluminum and alumina.
What makes its business model different is that it is not just a metal trader; it is a vertically integrated producer with access to mining, refining, and smelting. That gives it more control over supply and helps it serve customers that want a steady source of large volumes of standard aluminum products. As a major state-backed company in a strategic industry, it also plays a central role in China’s domestic aluminum supply chain.
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