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China Zhongwang Signs Agreement to Purchase Two Sets of World's Largest and Most Advanced 225MN Aluminium Extrusion Presses

2012-05-30 19:09 1542

HONG KONG, May 30, 2012 /PRNewswire-Asia/ -- The world's second largest industrial aluminium extrusion product developer and manufacturer and the largest one in Asia and China, China Zhongwang Holdings Limited, ("China Zhongwang" or "the Company", together with its subsidiaries "the Group"; HKEx stock code: 01333) today announced that it has entered into an equipment purchase agreement with Taiyuan Heavy Industry Co., Ltd, ("Taiyuan Heavy Industry") to place order for two sets of 225MN single action horizontal aluminium extrusion presses, with their core components to be imported from Germany, at an aggregate consideration of RMB707 million. The 225MN aluminium extrusion press is at present the largest and most advanced extrusion press of the same type in the world. The two sets of the 225MN extrusion presses are to be delivered by the 24th month and the 30th month respectively upon the signing of the equipment purchase agreement.

Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "Ever since 2003, China Zhongwang has begun business transformation, turning its focus to the high-end industrial aluminum extrusion business. In 2009, the Group put into operation the first 125MN oil-driven dual action aluminium extrusion press which was the world's largest press at that time, providing large-section and high value-added aluminium processed products to customers and thus significantly increasing the Group's core competitiveness. Today, the Group is once again introducing the world's largest 225MN aluminium extrusion press. Not only will it strengthen the Group's leading position in research and development and production of high-end industrial aluminium extrusion products, but it also symbolizes a notable stride for the technological development of the aluminium extrusion industry in China."

The Group has embarked on a production capacity optimization and expansion plan since 2011, according to which it has been adding 18 large tonnage extrusion presses of 75MN or above in 2011 to 2012.  Among them are nine sets of 75MN, six 90MN, and three sets of world's largest 125MN extrusion presses. The installation and operation of such equipment to be completed by the end of 2012 will increase the Group's annual production capacity of high precision, large cross-section, high-end industrial aluminium extrusion products and significantly sharpen its core competitive edge in the aluminium extrusion market.

About China Zhongwang Holdings Limited

China Zhongwang is the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China.  It has been focusing on the light-weight development of transportation, machinery and equipment and electric power engineering sectors through the provision of high quality industrial aluminium extrusion products. It currently operates 79 extrusion production lines, including a 125MN oil-driven dual action extrusion press which is at present the largest of its kind and one of the most advanced in the world. These facilities enable the Company to produce large-section, high-precision industrial aluminium extrusion products tailored to its customers' needs. Products of the Group are widely used in the transportation sector (including railway passenger compartments and cargo carriages, metropolitan subway and light rail, automobiles, heavy trucks, vessels, aviation and aerospace), machinery and equipment and electric power engineering sectors. To further leverage its established strength and advantages in the industry, the Group is extending its business into the high value-added aluminium flat rolled product segment. The first phase of production with an annual capacity of 1.8 million tonnes of aluminium flat rolled products will commence in the second half of 2014, while the total planned annual capacity of 3 million tonnes will be achieved by the end of 2018. 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 it will also achieve synergies with its existing business by taking full advantage of its customer base and market resources in related downstream application sectors.

For further information on the Group, please visit www.zhongwang.com.

Source: China Zhongwang Holdings Limited
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