A Chinese copper business prepares to earn sudden profits from Trump's fees

Zhejiang Hailiang Co., one of the largest copper manufacturers in China, is preparing for big profits from US President Donald Trump’s efforts to improve metal production in the United States. The company is one of the most important copper leaks used in cars, air conditioning and plumbing, but at first glance it looks far from the ‘America First’ policy. However, the shares have jumped around 20% since the Trump administration at the end of July has been imposed customs on imports of more than $ 15 billion last year. While the commercial confrontation between Washington and Beijing is escalating, investors focused on the activity of “heeliang” in the United States. The company announced in 2020 that it had targeted an annual production capacity of 100,000 tonnes in its Houston factory, after reaching only 30 thousand tonnes last year. In a reply via e -mail last week, the company confirmed that the expansion works are moving forward without providing additional details. You may also be interested in: Trump’s buyer fees affect the import of more than $ 15 billion, exceeding the performance of the Chinese company, “Haileang”, which excelled in its performance over the rest of the copper producers in China, as well as the wider CSI 300 index (CSI 300), which was a slight decline in the same period. The total annual production capacity of the business is about 1.5 million tonnes. 50% Customs duties on semi -made buyer, which will disrupt sales to the US market and increase the value of locally manufactured products, may be just a first step in the restructuring of the global copper industry led by Trump. The White House also ordered officials to prepare a plan within 90 days to set up fees on a wide range of other intensive commodities for buyer. See also: Trump confirms the imposition of copper fees by 50% from August, according to the company “Citic Securities Co”. Last year, the United States imported at least 600,000 tonnes of semi -made buyer, about a third of total domestic demand. With the high cost of this import, the Haileand factory in Houston is expected to achieve ‘extraordinary profits’, according to the estimates of the company. The Houston factory is part of a production network that also includes bases in Indonesia and Morocco. Although China represents the largest copper market in the world, the company has expanded its international operations to delay the local economy and the risks due to trade tensions with Western countries. This strategy can now pay fruit after a previous obstacle, as the Houston Net losses have incurred 35 million yuan ($ 4.9 million) losses due to high employment costs and materials, in addition to expenses related to the expansion, according to the company’s profit report. It was a burden on the net profits of the group, which fell 37% to 703 million yuan. The company could also benefit from a proposed local acquisition, as it announced in December the intention to buy an unannounced stake in the Golden Dragon Copper Tube Group, which also has a copper pipeline in Paine Hill, Alabama.