Chalco to buy three smelters from parent firm
Aluminum Corp of China (Chalco), the mainland's largest aluminium producer, plans to buy stakes in three smelters to boost capacity to tap into the strong demand for the metal.
Chalco said its parent company Chinalco had bought 80 per cent of Baotou Aluminum (Group), which in turn owns 55.06 per cent of Shanghai-listed Baotou Aluminum, from the Inner Mongolian government.
'We [Chalco] have plans to buy Baotou Aluminum from our parent Chinalco after we complete an A-share listing on the Shanghai Stock Exchange, but no timetable has been set yet,' Chalco investor relations manager Zhang Qing said.
Ms Zhang also confirmed that Chalco planned to acquire Lanzhou Liancheng Aluminium in Gansu province and Tongchuan Xinguang Aluminium in Shaanxi province from its parent firm.
All the three plants were transferred to Chinalco at no cost because the asset transfer was directed by the central government. Chalco's aluminium smelting capacity would be increased by 25 per cent, or 670,000 tonnes annually, to 3.37 million tonnes after the acquisition of the stakes in the three smelters, mainland newspapers said.
Chinalco would also inject four aluminium processing plants - Southwest Aluminum, Chinalco-SWA Plates & Strips, Chinalco Ruimin and Chinalco Henan Aluminum Fabrication - into Chalco to help it expand into the downstream processing business, the reports said.
Chalco, the world's second-largest alumina producer, said last month it would issue as many as 8.16 billion yuan worth of A shares in exchange for the shares it did not own in two Shanghai-listed units - Shandong Aluminium Industry and Lanzhou Aluminium.
After the takeover, which is still pending approval from shareholders and regulators, the two units will be delisted and Chalco's A shares will list in Shanghai instead.