Chinalco to fund aluminum base with Sapa Group

The Aluminum Corporation of China, commonly known as Chinalco, signed an agreement with a Swedish company in Beijing last year to fund a project in the Xipeng Aluminum Industrial Zone in the Jiulongpo district of Chongqing municipality.

Sapa Group, a Swedish company that makes extruded aluminum profiles, will invest 630 million yuan in the design, production and sales of aluminum alloy extruded structure products and car body module products for the rail and automobile markets.

Sapa Group has one of the world's most-advanced low-temperature, energy-saving and high-strength welding technologies.

After the project officially goes into operation in 2013, the annual output of car body modules and aluminum products for rail transport is estimated to reach a total of 20,000 tons.

The aluminum industrial zone's edge in terms of raw materials, equipment and market have attracted more aluminum producers in addition to Sapa group.

In 2006, the Chongqing Municipal Government and Chinalco outlined a cooperation agreement and vowed to make combined efforts to develop Chongqing into the "capital of China's aluminum-processing industry" in the next eight to 10 years.

According to the agreement, the center, based on the Xipeng Aluminum Industrial Zone, will feature first-class, the largest production scale, an improved industrial chain, highly centralized industry and sound services.

The aluminum industrial zone is expected to lead the municipality's aluminum processing industry to a more advanced level.

It was named by the Ministry of Science and Technology in 2008 as the special industry base of light alloy under the national Torch Plan Program. The ministry in 2010 again recognized it as the national high-tech aluminum-processing industrial base.

With the rapid development of the zone, a large number of famous enterprises have chosen to begin operations there. As of the end of last year, the zone has accommodated more than 260 companies with a combined industrial output value in excess of 35 billion yuan.

The zone now has a complete industrial chain of "electrolytic aluminum - aluminum rough machining - aluminum deep processing." The zone expects to achieve an annual output value of 100 billion yuan by the end of 2015.

mawei@chinadaily.com.cn

(China Daily 07/20/2012 page7)