Alcoa-CITIC Joint Venture inaugurated
To produce aluminum rolled products at the Bohai plant in Qinghuangdao, China.
13/10/05 A significant milestone was reached for Alcoa's growth in China with the official inauguration of Alcoa's new joint venture with China International Trust & Investment (CITIC), its equity partner in Alcoa Bohai Aluminum Industries Company Limited, to produce aluminum rolled products at the Bohai plant in Qinghuangdao, China. Alcoa is the managing partner in the new venture, holding a 73% stake. This investment lays the foundation for Alcoa's global flat-rolled products growth strategy in China, with a focus on high value added products.
Alcoa plans to invest over $200 million in a major expansion of the facility, which includes a technologically advanced hot rolling mill and related equipment. Alcoa anticipates having the mill commissioned by 2008 with output growing to more than 220,000 metric tons per year (mtpy).
The new expanded facility will produce high value added products that are essential to support the rapidly growing Chinese economy and will add significantly to the value of primary aluminum products in China. These include lithographic sheet, brazing sheet, can sheet, and foil.
Beyond flat-rolled products, Alcoa is exploring opportunities in China in other product areas, including hard alloy extrusions, automotive components, packaging, and primary aluminum.
Alcoa currently has 13 operating locations in China serving both the domestic and export markets.
The Alcoa and CITIC joint venture Bohai Aluminum was formed in 1995.
Alcoa is the world's leading producer and manager of primary aluminum, fabricated aluminum and alumina facilities, and is active in all major aspects of the industry. Alcoa serves the aerospace, automotive, packaging, building and construction, commercial transportation and industrial markets, bringing design, engineering, production and other capabilities of Alcoa's businesses to customers. In addition to aluminum products and components, Alcoa also markets consumer brands including Reynolds Wrap(R) foils and plastic wraps, Alcoa(R) wheels, and Baco(R) household wraps. Among its other businesses are vinyl siding, closures, fastening systems, precision castings, and electrical distribution systems for cars and trucks. The company has 131,000 employees in 43 countries and has been named one of the top three most sustainable corporations in the world at the World Economic Forum in Davos, Switzerland.
