China Zhongwang Holdings Ltd, Asia's largest maker of extruded aluminum products, said demand is increasing as carmakers use more of the lightweight metal in place of steel.

"Aluminum use in cars has changed noticeably in the past year," Executive Director Lu Changqing said in an interview in Hong Kong. "Growth will be driven by the transportation sector."

Aluminum producers globally are betting on regulations to cut carbon emissions and improve fuel efficiency in the US and Europe will prompt carmakers to use more aluminum. Jaguar Land Rover plans to start selling its first all-aluminum Range Rover sport utility vehicle next month, reducing the car's weight by 39 percent, while Daimler AG's Mercedes is using the metal for its 93,534 euro ($116,599) SL model.

China's industrial aluminum extrusion market will expand at least 12 percent this year to 4 million metric tons, Lu said. The Liaoning-based Zhongwang on Wednesday announced its first-half profit more than doubled after it shifted its focus to the domestic market.

China Daily-Agencies