Chalco to Expand Overseas
After buying a 12% stake in Rio Tinto Plc in February, Aluminum Corp of China Ltd (Chalco), the largest producer of metal, said it will step up its overseas expansion to ensure sustainable growth through more access to mineral resources.
The company will jointly invest in more overseas mining projects with international mining companies. It also plans to spend 1 billion yuan on a 5% stake in a proposed project with AVIC Ⅰ’s Commercial Aircraft Co.
Chalco decides to acquire more local alumina processors, most of which are struggling as slim processing fees fail to offset increase in costs. “It’s a good time to merge with small alumina processors to expand Chalco’s processing capacity in 2008,” said Xiao Yaqing, chairman and CEO of Chalco. Chalco’s processing capacity is expected to reach 1.09 million tons in 2008, largely through mergers and acquisitions.
Chalco now is also seeking opportunities to expand into other metals such as titanium and copper since aluminum producers are supposed to diversify their businesses in the face of international competition.
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