Yuefeng Aluminum is well-positioned to benefit from the accelerating industrial adoption of aluminum replacing copper in air conditioning systems, as it continues to expand capacity and reduce costs. The company’s aluminum heat-transfer materials are widely used in automotive, construction machinery, power stations, and residential/commercial air conditioning heat-exchange systems. With an existing business presence in the air conditioning sector, we believe Yuefeng stands to gain from rising demand driven by the shift toward aluminum substitution.
According to company disclosures, Yuefeng currently has a total finished aluminum production capacity of 500,000 metric tons per year. In April this year, the company secured land-use rights for Phase II of its Chongqing facility, and construction is progressing tightly on schedule. We expect that once Phase II comes online, the company’s annual capacity could exceed 800,000 metric tons, effectively addressing current hot-rolling capacity bottlenecks and further advancing its strategy of capacity expansion and cost optimization.
