The Development of Electrolytic Aluminum Industry and the Belt and Road Strategy: A Collaborative Innovation Perspective

The Development of Electrolytic Aluminum Industry and the Belt and Road Strategy: A Collaborative Innovation Perspective

Ping Zhou, Gexin Han, Xinyao Li
DOI: 10.4018/978-1-5225-8440-7.ch009
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Abstract

Innovation ability is the key to enterprise development. China's electrolytic aluminum enterprises have maintained a high growth rate for many years and have become one of the industries with the highest social contribution rate in the non-ferrous metal industry. However, a prominent problem in the development process of the industry is to put less emphasis on innovation and investment. Excessive production capacity due to blind investment has become a common disease of enterprises, which has seriously affected their performance. This chapter tries to explore cooperative motivation, innovation, and development of the electrolytic aluminum enterprise. The aim is for the enterprise to find source sex power basis, combined with the strategy of “area,” all the way to the electrolytic aluminum enterprise value influence, understand all kinds of system to the importance of the synergy of electrolytic aluminum enterprises, in order to further promote collaborative innovation measures to provide adequate basis.
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Background

As one of the major non-ferrous metal mineral resources, aluminum is an indispensable and important element in modern industry, agriculture, national defense, and the development of science and technology. It has been widely used in many fields, such as architecture, transportation, electricity, and packaging, and is a basic raw material that cannot be replaced by modern high-tech development. As the basic raw material of industrial development, aluminum, which is one of the industries with the highest social contribution rate in China's non-ferrous metal industry, does not pollute the environment during use and is highly sought after for its high recycling and utilization. In China, aluminum has become the second largest metal material after steel, and the electrolytic aluminum industry has maintained rapid growth. Among all non-ferrous metal varieties, the growth rate has been the fastest for many years.

In the early 20th century, as a result of the guidance of China's industrial policy and the encouraging guidance of macro-control policy, China's aluminum industry has achieved very rapid development and made relatively important contributions to the economic development of the motherland. However, in recent years, the reckless activity of investors has led to a remarkable acceleration of the development of China's electrolytic aluminum projects, which eventually led to the extreme excess of China's electrolytic aluminum production capacity. The phenomenon of oversupply has become increasingly serious, and it is difficult to reverse in the short term. In addition, still a few enterprises have used to build first, cause already become fact hind to declare to examine and approve to wait for a method to build or expand electrolytic aluminum project. Since competition in the electrolytic aluminum industry is more intense, the market price has flagged for a long time. Consequently, the contradiction, such as a gradually enlarged loss area of the enterprise, is highlighted more and more. Since 2003, the Chinese government has stepped up its regulation of the electrolytic aluminum industry, hoping to slow down the biggest problem in the industry: excess capacity. However, the actual situation is not as the government expected. For more than 10 years, this state has not been effectively alleviated. Excess capacity leads to oversupply of electrolytic aluminum, low market price, weakened profitability of enterprises, and strong difficulty with surviving.

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