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 KML ✉

link 30.04.2007 7:27 
Subject: utilities to backward integrate
Power grid build: we expect a decline in the number of power-isolated
regions in China; such regions have historically incentivised utilities to
backward integrate and build aluminium smelting capacity.

The link-up of the Chinese power grid is likely to significantly increase the
competition for each kilowatt-hour of power available. Aluminium smelters
previously built to allow utilities to backward integrate and obtain value from
isolated power sources will find that they begin to compete for power with other
emerging sources of consumption.

 

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