BIZCHINA / Overseas Investment |
Alcan keen to invest more in China(Shanghai Daily)Updated: 2006-11-09 15:05 Alcan Inc, the world's second-largest aluminum producer, is in talks to increase its investment with China's No 2 maker of the lightweight metal to tap rising demand, Bloomberg News said. The Canadian company is "looking at taking a larger position" by investing in a 250,000-ton a year expansion at State-owned Qingtongxia Aluminum Group, Cynthia Carroll, head of Alcan's primary metal group, said. "We are very pleased with the progress that has been made." Alcan, which paid about US$150 million for a 50 percent stake in a 150,000-ton production line at Qingtongxia in 2004, wants to increase market share in China, where demand is forecast to double by 2015. Swiss commodities trader Glencore International AG signed an agreement to buy shares in Qingtongxia in August. "Chinese aluminum smelters are worth investing in because they have good prospects for profit in the next few years," said Liu Defei, an analyst at Beijing Antaike Information Development Co by phone from Beijing yesterday. Liu said aluminum prices are rising and the costs of alumina, a raw material, are falling. Antaike advises the government on policies. Aluminum for delivery in three months has risen 38 percent in the past year on the London Metal Exchange as economic growth in China, the fastest-growing major economy, increases demand for beverage cans and cars. "We continue to look at other opportunities in China," Carroll said in an interview in Beijing. "Aluminum is the most sought-after metal in China." She didn't say how much Alcan may invest. Alcan set up its joint venture with Qingtongxia, in western Ningxia Hui Autonomous Region, two years ago. The venture includes a 150,000-ton capacity smelter, or the No 3 smelting line, and a coal-fired power plant. "We are obviously still very much interested in the option on the No 4 smelting line," which was completed last year and has a capacity of 250,000 tons a year, James Zhao, director in charge of Alcan's Asia primary aluminum business, said in e-mail response to Bloomberg News questions. (For more biz stories, please visit Industry Updates) |
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