China’s largest state aluminium producer Chinalco has sealed a joint venture deal with the Yunnan government and the province’s state-run metal group, giving it its first foothold in the southwestern region’s aluminium market.
Yunnan Metallurgical Group will be merged into a joint venture with Chinalco, according to a statement on Monday from Yunnan Metallurgical’s listed units, Yunnan Chihong Zinc & Germanium Co Ltd and Yunnan Aluminium Co Ltd.
Chinalco will own 58 percent of the venture, with the Yunnan provincial government owning the remaining 42 percent, the statement said.
The agreement is the latest sign that aluminium producers are seeking to gain greater access to smelting capacity in the south, where hydropower is abundant, as the government cracks down on coal-fired power.
A spokesman for Chinalco confirmed it would be Chinalco’s first aluminium asset in the province.
豫公网安备41010502003434号