"As one of the largest bauxite producers in the industry, our goal is to become a dominant force in the bauxite and alumina fields. Our Yavin alumina project in Queensland, Australia plans to expand production by 2 million tons, It will be completed in the third quarter of next year. "Rio Tinto Alcoa CEO Jacynthe Cote said in an exclusive interview with the First Financial Daily yesterday.
Alcan has previously been involved in upstream and downstream fields such as bauxite, electrolytic aluminum, aluminum processing, and also involved in the fields of packaging and engineering products. However, after being acquired by Rio Tinto, Rio Tinto Alcoa not only abandoned packaging and engineering products, but also abandoned the aluminum processing business, focusing all its energy on bauxite, alumina and electrolytic aluminum.
For why not enter the more profitable aluminum processing field, Jacynthe Cote said: "Our biggest advantage is exploration and early smelting, such as bauxite, primary aluminum electrolysis. We will not compete with our customers, aluminum processing is not us The strengths. It has been done before, but it is not suitable now. "Rio Tinto ’s profitability is significantly higher than that of domestic electrolytic aluminum companies. According to Pina Pescatore, Vice President of Planning and Reporting Department of Rio Tinto Alcan, according to the price of US $ 2,772, the gross profit margin of Rio Tinto Alcan reached 21%. This year the plan is to increase the gross profit margin from 21% to 40%. The most important way is Reduce expenditure costs and develop core business.