(Yicai Global) June 3 -- Weiqiao Pioneering Group, the world's largest producer of electrolytic aluminum, intends to invest nearly CNY6.3 billion (USD912 million) to build a high-precision aluminum strip production line.

Subsidiary Zouping Hongfa Aluminium Technology will build the plant in the group's hometown of Binzhou in Shandong province, the parent company said on its website on May 30. The facility will have annual output of 760,000 tons.

With China strictly regulating the industry in recent years, Weiqiao Pioneering's business has suffered. The group closed more than 2 million tons of electrolytic aluminum production capacity in 2017 owing to environmental factors. Some of the projects have not restarted, Yicai Global has learned.

The National Development and Reform Commission said in April 2017 that the firm had built five electrolytic aluminum projects in violation of regulations, with a production capacity of 2.7 million tons. Weiqiao is replacing some and shifting others abroad.

The new project will include environmental protection facilities for sewage and waste gas treatment.

Binzhou city is seeking to work with other aluminum-producing provinces and cities. It recently met with representatives from Foshan in Guangdong province, one of China's important aluminum-processing bases, as it looks to seize more development opportunities.

Editor: Xu Wei