Qinyang Power & Aluminum Group announced it would set up a JV with a Beijing-based energy company to build and operate a 140,000 ton-per-year aluminum complex in Henan province.
The Beijing company would invest RMB 2.3 billion to take a 70% stake, with Qinyang taking the remaining 30%.
The company said that the complex would include a power station and would be self-sufficient in power.
Many Chinese aluminum smelters began the year by cutting output by as much as 20% or postponing expansions in response to a shortage of the raw material alumina and of power.
Construction will begin as early as February and should be completed before the first half of 2006.