Bid to curb overheating in aluminum industry
By Wan Zhihong (China Daily)Updated: 2007-05-09 08:51
Chalco's move
China's aluminum industry must embrace consolidation, and the nation's biggest aluminum and alumina producer, Aluminum Corp of China Ltd (Chalco), is doing a great job to boost its production capacity, said Lang.
"Despite overcapacity in the aluminum sector, Chalco has been active in mergers and acquisitions in the past years."
Last March, Chalco agreed to buy Fushun Aluminum Co for 500 million yuan. The Fushun Aluminum plant, which produces primary aluminum and carbon products, had a smelting capacity of 14,000 tons in 2005 and net assets of 503 million yuan before the purchase.
Chalco will continue its mergers and acquisitions, said Xiao Yaqing, CEO of the company. It's trying to become a more integrated player through capacity expansion.
Last year, Aluminum Corp of China, parent of the listed Chalco, recorded 22.5 billion yuan in net profit, an increase of 18.1 billion yuan over its profit three years ago.
Production of alumina has accounted for about 60 percent of its profit. The company will increase its alumina production by opening new manufacturing facilities.
"We hope that through our M&A activities in the aluminum sector, the production of primary aluminum can be increased," said Lu Yongqing, vice-president of the company.
(China Daily 05/09/2007 page15)
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