Aluminum Corp. of China Ltd. (ACH)
News and Research on Aluminum Corp. of China Ltd. (ACH)
Business Description
Aluminum Corporation of China Limited engages in the production, sale and research of alumina and primary aluminum in China. The company also engages primarily in bauxite mining, alumina refining and primary aluminum smelting operations. It also provides engineering and construction services.
The company also produces and sells alumina chemical products, including alumina hydrate and alumina-based industrial chemical products, carbon products, including principally carbon anodes and cathodes, and gallium. The company produced approximately 8,830,000 tones of alumina and approximately 1,100,000 tones of alumina chemical products in 2006.
Segments
The company operates its business in two segments: Alumina Segment, and Primary Aluminum Segment.
Alumina Segment
Alumina Segment includes the production and sale of alumina-related products, alumina and alumina chemical products, including alumina hydrate, alumina-based industrial chemical products and gallium. Alumina chemical products are used in the production of chemical, pharmaceutical, ceramic and construction materials. In the process of refining bauxite into alumina, the company also produces gallium, which is a high-value rare metal with special uses in the electronics and telecommunications industries.
Aluminum Segment
Aluminum Segment includes the production and sale of primary aluminum-related products, primary aluminum (including both ingots and other primary aluminum products) and carbon products.
The company's standard ingots are 20-kilogram remelt ingots used for general aluminum fabrication primarily for the auto, construction, power and consumer goods industries. Other than ingots, the company also produces a small amount of value-added and primary aluminum, such as electrical aluminum and aluminum alloys used for special industrial applications. Its primary aluminum plants produce carbon products (principally carbon anodes and cathodes) used in smelting operations. The company also sells its carbon products to external smelters.
Joint Venture
The company entered into a joint venture agreement with Shanxi Guanlv Co., Ltd. to establish a joint venture company, Shanxi Huasheng Aluminum Company, Ltd.
Agreements
In March 2006, the company entered into an agreement with Liaoning Fushun Aluminum Plant to acquire the 100% equity interest held by it in Liaoning Fushun Aluminum Co., Ltd. (Fushun Aluminum), with a designed annual production capacity of 140,000 tones. Fushun Aluminum's primary business is the production of primary aluminum and carbon products.
In April, 2006, the company entered into a joint venture agreement with Guizhou Wujiang Hydropower Development Co., Ltd. to establish a joint venture company, Chalco Zunyi Alumina Co., Ltd. The company holds a 67% equity interest in the joint venture company.
In May 2006, the company entered into an agreement to acquire 29% of Jiaozuo Wanfang Group. Jiaozuo Wanfang has a designed annual production capacity of 272,000 tones of primary aluminum. Jiaozuo Wanfang is a joint stock limited company established in the PRC.
In June 2006, the company entered into an agreement with Guizhou Wujiang Hydropower Development Co., Ltd. and other eight companies who were the shareholders of Zunyi Aluminum to purchase part of the equity interest from Guizhou Wujiang Hydropower Development Co., Ltd. and all the equity interest from the other eight companies. The company holds 61.3% of the equity interest of Zunyi Aluminum. Zunyi Aluminum has a designed annual production capacity of aluminum of 110,000 tones.
In July 2006, the company entered into an agreement with Shandong Huasheng Jiangquan Group to acquire a 55% equity interest in Shandong Huayu, a subsidiary of Shandong Huasheng Jiangquan Group. Shandong Huayu has a designed annual production capacity of 100,000 tones of primary aluminum, and also has other supporting facilities and two 135MW coal-fired generators.
In August 2006, the company entered into an agreement with Baiyin Nonferrous Metal (Group) Co., Ltd. (Baiyin Nonferrous), and Baiyin Ibis Aluminum Co., Ltd. (Baiyin Ibis). Baiyin Nonferrous contributed 127,000 tones of primary aluminum smelting and supporting facilities owned by Baiyin Ibis as capital contribution and held a 49% equity interest in Gansu Hualu, a subsidiary of Baiyin Ibis, and it held 51% equity interest in Gansu Hualu. The joint venture company would have a designed annual production capacity of 127,000 tones of primary aluminum.
History
Aluminum Corporation of China Limited was incorporated in 2001.
