To Construct a New Facility for High-end Aluminium Flat Rolled Product Manufacturing
HONG KONG, March 9 2012, /PRNewswire-Asia/ -- The world's second largest industrial aluminium extrusion product developer and manufacturer and the largest in Asia and China, China Zhongwang Holdings Limited, ("China Zhongwang" or "the Company", together with its subsidiaries "the Group"; Stock code: 01333) today announced Tianjin Zhongwang Aluminium Co., Ltd. ("Tianjin Zhongwang"), a wholly-owned subsidiary of the Company, has won the bid for land use rights for industrial purposes in Wuqing District, Tianjin City, PRC, at a consideration of approximately RMB1.4 billion. The land will be used for the construction of a new facility for the manufacturing of high-end aluminium flat rolled products.
Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "The aluminium flat rolled business has been earmarked as an important venture of the Group in the coming years. The Group has been searching for suitable locations for new production facilities according to its plan ever since it announced its plan to enter the high-end aluminium flat rolled product market segment. The successful bid for the land use rights in Tianjin symbolizes the initial completion of this search. Facility construction will now be in full gear to meet the target of completing phase I development which will have an annual production capacity of 1.8 million tonnes and commence production in the second half of 2014. The ultimate goal is to realize the total designed production capacity of 3 million tonnes in 2018."
The land acquired, with a 50-year term for the land use rights, is situated on the north side of Wuning Road, Auto Parts Industrial Park, Wuqing District, Tianjin City, PRC. It has a total area of approximately 5.5 million sqm.
China Zhongwang has made thorough planning for entering the aluminium flat rolled business. Orders for advanced imported equipment from Germany and the U.S. were placed last October. Such equipment includes hot continuous rolling mills and cold rolling mills for the production of medium-to-high thickness plate and sheet products, smelting and casting lines, quenching furnaces and heat treatment furnaces for the ancillary production of medium-to-high thickness plate and sheet products, and aluminium foil rolling mills, amongst others. In addition, the Group has embarked on an overseas recruitment programme to hire seasoned industry professionals in order to speed up the development of the research & development team and to strengthen its technology pool.
"The Group has its focus squarely placed on the aluminium processing industry. On the solid foundation of our industrial aluminium extrusion business, we have extended our foothold to the deep-processing business and the aluminium flat-rolled business to establish an integrated business model with three resources-sharing and synergistic core businesses. Building from strength to strength based on our technology advantage in the aluminium processing industry, a wealth of talents, extensive customer base and business network as well as our solid financial position, the aluminium flat rolled business will help consolidate the Group’s leading position in the industry. This three-pronged business model will drive the Group’s long term growth, creating sustainable investment returns to our shareholders," Lu concluded.
About China Zhongwang Holdings Limited
China Zhongwang is the world’s second largest and Asia’s and China’s largest industrial aluminium extrusion product developer and manufacturer, with a particular focus on the transportation, machinery equipment and electric power engineering sectors. It currently operates 79 extrusion production lines, including a 125MN oil-driven dual action extrusion press which is currently the largest of its kind in China and one of the most advanced in the world. These facilities enable the Company to produce large-section and high-precision industrial aluminium extrusion products tailored to its customers’ needs. These products are widely used in the transportation sector such as cargo and passenger compartments, metropolitan railway, aviation, vessels, automobiles, as well as machinery equipment and electric power engineering sectors etc. In addition, the Group plans to extend its business into the high value-added aluminium flat rolled product segment. This new business venture will not only enable the Group to further capitalize on its leading edge in aluminium alloy smelting and casting and product research and development, but also achieve synergies with its existing business by taking full advantage of its customer and market resources in related downstream application sectors.
For further information on the Group, please visit www.zhongwang.com
