Apr 14 2003
By merging several of their smaller aluminium producing companies with Aluminium Corp of China, the country’s largest producer, the smaller companies hope to be able to reduce costs by negotiating cheaper raw materials prices.
There are apparently 60 producers who have applied to become members. These total approximately 70% of China’s production capacity.
China was rated as the largest producer of aluminium in 2001, experiencing rapid expansion after the aluminium price rebounded. This however lead to a domestic glut, when they produced 4.3million tons last year.
Aluminium Corp of China is the sole Chinese producer of alumina, the raw material for aluminium production. Currently they can supply only 50% of the country’s demand.
The new organisation will have a loose management form and will share no assets with the Aluminium Corp of China. Aluminium Corp of China will form the basis of the new group. The launch of the new group has not yet been scheduled.
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