Alcoa and the China Power Investment Corporation (CPI) will collaborate on a broad range of aluminum and energy projects representing more than $7.5 billion of potential investment over the coming years, under a Memorandum of Understanding (MOU) signed by the companies today.
U.S. Secretary of Energy Steven Chu, Chinese Minister of Science and Technology Wan Gang, and Administrator Zhang Guabao of the Chinese National Energy Administration presided over the signing ceremony between Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld and CPI President Lu Qizhou.
The ceremony was held in Washington, DC, during Chinese President Hu Jintao’s State Visit to the United States. The MOU represents a global, fully integrated platform for cooperation between the two parties in China and key markets around the world.
“This is an historic opportunity at a pivotal moment in U.S.-China relations,” Kleinfeld said. “Two iconic brands will be working together around the world in a long-term relationship, sharing best practices and experiences in promising emerging economies.”
Lu added, “CPI is a comprehensive energy group developing and utilizing new and clean energy sources. This MOU marks an important step for CPI to partner with Alcoa, a leading American company in its industry, to achieve mutually beneficial cooperation, which will bring a bright future for all of us.”
In China, Alcoa and CPI will intensify their collaboration on developing clean energy projects such as wind and solar and state-of-the-art aluminum smelting operations. Both parties will also work toward developing high-end aluminum industrial parks. Alcoa and CPI will also expand their current trading relationship. Outside China, CPI and Alcoa will explore opportunities in a number of geographies. The projects may range from mining, refining and smelting to collaboration on energy projects.
“Alcoa and CPI understand that the world's environmental challenges can best be met through cooperation between the U.S. and China,” Kleinfeld and Lu said, citing the MOU as an example. Alcoa is a global leader in using hydroelectric power in the production of aluminum, and CPI has the most clean energy assets of any Chinese utility. Alcoa and CPI will focus heavily on the use of clean energy in their cooperation in China.