Alcoa has announced that it has received approval from the Ministry of Commerce in China to establish a new joint venture with China International Trust & Investment (CITIC), its equity partner in Bohai Aluminum, to produce aluminum rolled products at the Bohai plant in Qinhuangdao, China. This is the final approval required in order for the venture to move forward. Alcoa will be the managing partner (73% stake) in the new venture, which is expected to be finalized by early October 2005.
Alcoa plans to invest approximately $200 million in a major expansion of the facility, which includes a state-of-the art hot rolling mill and related equipment. Alcoa anticipates having the mill commissioned by 2008.
The new joint venture will serve customers in China and throughout Asia in multiple markets with high quality aluminum fabricated products, including sheet, plate and foil.
"This new entity underscores Alcoa's long term commitment to grow in China, one of the fastest growing economies in the world, and expands our presence in Asia. We are bullish about the success of this venture, as we will be managing a facility that produces high value products in which Alcoa has established knowledge and customers worldwide," said Alcoa Chairman and CEO Alain Belda.
The Alcoa and CITIC joint venture Bohai Aluminum was formed in 1995. Bohai Aluminum produces aluminum foil.