Companies

Orkla metal unit in $70m China JV with Chinalco

(Agencies)
Updated: 2011-04-12 13:27

OSLO - Orkla's aluminum extrusion unit Sapa said it had formed a joint venture with Aluminum Corp of China Ltd (Chinalco) to build a plant to serve China's high-speed train industry.

The two partners will together invest $70 million in the 50-50 joint venture.

"The JV will build a state-of-the-art fully integrated aluminum extrusion and fabrication facility in Chongqing in Southwest China," Norwegian conglomerate Orkla said in a statement.

"In addition it will establish R&D facilities to support the development of the rolling stock companies in China."

Orkla said the JV fits well with the planned development of China's train system -- with high-speed rail service seen stretching to 18,000 km (11,185 miles) by 2020 from 13,000 km in 2012.