New Expansion Positions Angola as Emerging Aluminium Producer

SINOMACH  agreement advances one of Angola’s most ambitious industrial diversification projects and strengthens efforts to build value-added manufacturing capacity beyond the oil sector.

Aluminium project enters next growth phase

The Phase II contract was signed on 11 June during the 17th International Infrastructure Investment and Construction Forum and Exhibition. The contract was awarded to SINOMACH International Engineering (Jiangsu) Co., Ltd. and will add 120,000 tonnes of annual electrolytic aluminium production capacity.

This follows the inauguration of the project’s first 120,000-tonne production line in January 2026 by President João Lourenço.

The Huatong Aluminium Industrial Park is being developed in five phases over an estimated eight to ten years. Total investment is expected to reach approximately US$1.6 billion.

Phase I alone required around US$250 million in capital expenditure and is expected to generate roughly 1,200 direct jobs.

For investors, the choice of an engineering, procurement and construction (EPC) model is significant. EPC contracts place responsibility for design, procurement, construction and commissioning under a single contractor, helping improve project coordination and delivery discipline. However, execution performance remains a critical factor given the scale and complexity of the development.

Hydropower underpins the investment case

The long-term viability of the project depends heavily on access to reliable and affordable electricity.

Primary aluminium production is among the most energy-intensive industrial processes in the world. The Hall-Héroult smelting process typically requires between 13,000 and 15,000 kilowatt-hours of electricity for every tonne of aluminium produced. As a result, energy costs are often the single most important determinant of competitiveness.

Angola is seeking to leverage its growing hydropower capacity to support energy-intensive industries. The country’s electricity system already benefits from the Laúca Dam, while the large-scale Caculo Cabaça Hydroelectric Project remains under development.

Together, these projects strengthen the case for establishing domestic aluminium production and other power-intensive industries.

The aluminium park also aligns with Angola’s broader industrialisation agenda. The Barra do Dande Free Trade Zone was created to attract manufacturing investment, support exports and deepen economic diversification away from hydrocarbons.

Strategic significance for Angola and Africa

The project has implications beyond Angola.

Primary aluminium production remains concentrated in a limited number of facilities across Africa. Additional capacity in Angola would expand the continent’s industrial processing base and create opportunities across logistics, construction, engineering services and downstream manufacturing.

The timing also aligns with growing global demand for supply-chain diversification and energy-transition materials. Aluminium plays a critical role in renewable energy systems, electric vehicles, transmission infrastructure and advanced manufacturing.

For investors, the central question remains execution. The project’s success will depend on construction timelines, power availability and the smooth commissioning of future phases.

If delivered as planned, the Huatong Aluminium Industrial Park could become one of Angola’s most important industrial assets and a flagship example of how hydropower resources and industrial policy can be combined to support long-term economic diversification.

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