Sep 13 2007
Alcoa International (Asia) Limited, a wholly owned subsidiary of Alcoa, today announced it has sold its equity holdings in the Aluminum Corporation of China Limited (Chalco) through a placement of shares for approximately HK$15.3 billion (US$2.0 billion) or HK$17.34 per share. Alcoa had been a significant investor in Chalco since its initial public offering (IPO) in 2001, holding approximately 7 percent of its shares. Alcoa also reiterated its ongoing commitment to the Chinese aluminum industry and will continue to pursue investments in both upstream and downstream assets there.
“We normally do not act as financial investors, but we participated in the Chalco IPO 6 years ago to help facilitate its entry into the capital markets,” said Alcoa Chairman and CEO Alain Belda. “Over the past seven years Chalco has become firmly established in the equity market so our role as a financial investor is no longer needed, and we can redeploy our capital into other value-adding options, including projects in China.
“Chalco and Chinalco are to be commended for their evolution of the business since their IPO,” said Belda. “Under Chairman Xiao's leadership, they have emerged as a global leader in the aluminum industry and are playing an important role within China in the development of the sector there. We will continue to pursue opportunities with Chalco for mutual investment and growth, both within China and overseas,” added Belda.
“Our commitment to China and the opportunities there has never been stronger,” said Belda. “As a major player in the Chinese aluminum industry, we look forward to continuing to work with our partners and Chalco to help the industry realize its great potential.”
Alcoa's presence in China began in 1993 with the creation of the Alcoa Asia Ltd. representative office in Beijing. Since then, Alcoa has established 17 operating locations that provide innovative solutions for customers in all major markets. Products produced include foil, fasteners, automotive components, construction products, plastic closures, and decorative sheet.
Alcoa is in the midst of a major expansion of its Bohai rolling mill in Qinghuangdao, China, where the Company is investing approximately $300 million in a technologically advanced hot rolling mill and related equipment. Alcoa anticipates having the mill commissioned in 2008, with output growing to more than 220,000 metric tons per year (mtpy).