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Nanshan Aluminium targets capacity growth in Indonesia at an estimated $436.57M

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Update time : 2026-01-21 17:58:58
Nanshan Aluminium International Holdings Limited is all set to start off preparatory works in 2026 on a new electrolytic aluminium facility in Indonesia’s Galang Batang Special Economic Zone. The facility is planned to produce up to 250,000 tonnes of aluminium a year, with development costs estimated at roughly USD 436.57 million spread across two years, subject to pending environmental and building approvals.
The expansion does not stop there. Over the medium to long term, the Group is also assessing the development of a further electrolytic aluminium project with a planned capacity of up to 500,000 tonnes per year. This longer-term ambition reflects management’s intention to gradually bring electrolytic aluminium output into closer balance with the company’s existing alumina production, strengthening coordination between upstream and downstream operations and improving overall efficiency.

According to the company, the decision is identified by a mix of practical and market-driven considerations. The project site offers ample space for expansion, sits close to some of the world’s busiest shipping lanes, and benefits from a global market where demand for electrolytic aluminium is continuing to firm alongside prices. In addition, the Group’s earlier work on alumina developments in Indonesia has given it first-hand knowledge of local operating conditions, helping to limit execution challenges. Taken together, these elements are expected to open up additional revenue streams, lift margins and leave the business better placed to navigate shifts in market conditions.

From an equity market perspective, sentiment remains positive. The latest analyst coverage on Nanshan Aluminium International Holdings Limited shares (2610), which recently gained 5.60 per cent, maintains a Buy rating with a target price of HKD 68.00 ( USD 8.7).

Nanshan Aluminium International Holdings Limited operates as an integrated aluminium producer with both upstream and downstream capabilities. The Group already runs an alumina production facility in the Galang Batang Special Economic Zone on Bintan Island, Indonesia. Its proximity to key maritime routes, including the Strait of Malacca, offers efficient access to markets across Southeast Asia, Europe, India and the Middle East, supporting the company’s ongoing efforts to expand its international customer base and enhance operational performance.

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