China Zhongwang Holdings Ltd, the world's second-largest manufacturer of aluminum extrusion products by volume, has won a bid for land use rights in Tianjin at a price of some 1.4 billion yuan ($222 million), the company announced Friday.

The 50-year lease is for a 5.5 million square meter property located in the Wuqing district in Tianjin, a port city in North China, and will be used for a new facility for the manufacturing of high-end aluminum flat rolled products used in automobiles and cans.

The company will reach an annual production capacity of 1.8 million tons by the second half of 2014, said the Lu Changqing, executive director and vice president of the company. He said the ultimate goal is a production capacity of 3 million tons by the end of 2018.

Zhongwang Holdings "has been searching for suitable locations for new production facilities since it announced its intention to enter the high-end aluminum flat rolled product market segment," Lu said. "This successful bid will help the company meet its targets."

A recent report from Boston Consulting Group said that global consumption of flat-rolled aluminum products is expected to increase from 15.6 million tons in 2009 to 28 million tons in 2020. China, as the world's fastest-growing market for flat-rolled products, will consume 14 million tons of the material in 2020, accounting for as much as half of the global consumption.