Chinese company sells coal plants, moves aluminum production to hydro-rich Yunnan
Power Engineering - Aluminum producer China Hongqiao Group Limited is selling its coal-fired power generation assets to Shandong Guoxu New Energy Co. as part of a plan to move its manufacturing bases to Yunnan Province to take advantage of low-cost hydroelectric resources.
The board announced March 18 that it had entered into the Assets Transfer Agreement, for a “total consideration” of RMB3 billion (US$422 million).
In a statement explaining the reason for the sale, China Hongqiao Group said: “In recent years, the Chinese government has been striving to improve environmental protection. In light of the nation and Shandong Province implementing policies related to reducing coal consumption during the Thirteenth Five-year Plan, governments of different levels have been taking proactive measures to accomplish the objectives of environmental protection during the Thirteenth Five-year Plan. The group also proactively responded to the national environmental protection policies by developing green energy and establishing new manufacturing bases relying on the local hydroelectric resources in Yunnan Province.