Jinma Group reports that its subsidiary Sichuan Aostaral Aluminium Co., Ltd, (Aostar Aluminium) would suspend production of electrolytic aluminium on the current soft demand and slumping prices.
As earlier as in October, Aostar Aluminium decided to cut 50 percent of its production.
According to market insiders, business of electrolytic aluminium contributes 90 percent of the group's primary operation income. Thus, the production suspension may exert great impact on the company's overall performance.
Jinma Group invested 112 million yuan in purchasing 40 percent shares of Sichuan Aostaral Aluminium Co., Ltd. in April 2007, and became the latter's biggest shareholder.
China's(cnmining) largest aluminium producer Chalco (601600.SH) started to cut output in late October.
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