To Jointly Develop Nonferrous Metal TradingBusiness
HONG KONG, Nov. 18, 2011 /PRNewswire-Asia/ -- China Zhongwang Holdings Limited, ("China Zhongwang" or "the Company", together with its subsidiaries "the Group"; Stock code: 01333) today announced a joint venture agreement with China Railway Materials Shenyang Company Limited ("CRMSC"), a subsidiary of China Railway Materials Commercial Corporation, for the establishment of CR Zhongwang Aluminium Company Limited ("CR Zhongwang"), a joint venture in the PRC, to develop the trading of nonferrous metals, nonferrous metal products and metallic materials and import and export business.
CR Zhongwang, a 49:51 joint venture of China Zhongwang and CRMSC, is proposed to have a registered capital of RMB100,000,000 which shall be contributed by the two equity owners on a pro-rata basis.
CRMSC is a subsidiary of China Railway Materials Commercial Corporation, a large central government-owned enterprise under the supervision of State-owned Assets Supervision & Administration Commission of the State Council. The Corporation is responsible for the procurement of diesel and steel rails, new locomotives and rolling stock spare parts for speed upgrading and maintenance. CRMSC leverages its strong background to engage in the provision of integrated materials services to primarily the railway and steel industries as its core business, which is supplemented by other businesses including the trading of mining ores, integrated logistics services and international trading. As such, CRMSC has developed into a professional, cross-sector, integrated materials trading and logistics enterprise with multiple channels and operational models.
Commenting on the joint venture with China Zhongwang, Mr. Yang Xiaoming, General Manager of CRMSC said: "CRMSC is pleased to have fostered partnership with China Zhongwang, the world's second largest industrial aluminium extrusion product developer and manufacturer, to jointly develop in the lucrative market of nonferrous metal products and other metallic materials. Aluminium, as a light-weight, corrosion resistant and recyclable metal, has seen increasing applications in the railway and other transportation sectors. Its development potential is simply huge. Our joint venture CR Zhongwang combines CRMSC's unrivalled strengths in market resources and sales channels, and Zhongwang's technology niche in the development and manufacture of industrial aluminium extrusion products. The strong partnership puts us on a broader and elevated platform to jointly contribute to the development of the railway industry, at home and in other parts of the world."
Mr. Liu Zhongtian, Chairman and President of China Zhongwang, commented: "CR Zhongwang is a win-win partnership. CRMSC has comprehensive logistics resources, cross-industry business chain and a diversified customer base. The formation of the joint venture allows China Zhongwang to contribute our advantage in the R&D and manufacture of processed aluminium product sector, and in return, we benefit from strengthened market presence in the railway industry, which will eventually enhance our overall competitive edge. More importantly, the joint venture reinforces the close partnership between the two parties and lays a solid foundation for our cooperation in the future."
About China Railway Materials Shenyang Company Limited
CRMSC is a subsidiary of China Railway Materials Commercial Corporation which was restructured from the Materials Management Bureau of the Ministry of Railways. A large-scale state-owned enterprise under the supervision of State-owned Assets Supervision & Administration Commission of the State Council, it is principally engaged in the provision and trading of integrated materials for the railway industry and is responsible for the supply of diesel and steel rails as well as the procurement of new locomotives & rolling stock spare parts for speed upgrading and maintenance. It is a major steel trading agent by sales volume in the PRC. Combining complementary services including logistics, supply of ores and coal, international business, industrial manufacturing, financing and leasing services, it has established a strong foothold in offering integrated services to the railway industry and the steel and iron trading sector. The Corporation ranked 58th among the Top 500 Chinese Enterprises in 2010 and in 2011, it was among the Fortune 500 ranked by Fortune magazine.
CRMSC is the national trading agent of Anshan Iron & Steel Group Corporation and many other large-scale steel corporations in the PRC. Annually, it sold over 2 million tonnes of steel rails and other steel products, 800,000 tonnes of diesel and lubricant oils, and 2.6 million tonnes of iron ores and coal. As a designated national supplier of high quality materials to key state projects including the Harbin–Dalian and Beijing-Shenyang high-speed train projects etc., CRMSC provides comprehensive and integrated logistics and trading services to its clients.
For more information on CRMSC, please visit http://syc.crmsc.com.cn .
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. Headquartered in Liaoning province, China, the Group has, over the years, committed itself to the energy-saving and light-weight development of, amongst others, transportation, machinery equipment and electric power engineering sectors through the provision of high quality industrial aluminium extrusion products.
After 18 years of dedication and hard work since its founding in 1993, the Group owned 75 leading aluminium extrusion production lines in the world as at 30 September 2011, of which the 125MN oil-driven dual action aluminium extrusion press is one of the largest and most advanced presses in China and in the world. It has built the world's leading aluminium tilt smelting and casting equipment in the industry, as well as the largest customized industrial aluminium extrusion product die design and manufacturing centre in Asia. The Group's annual production capacity as at 30 September 2011 was over 700,000 tonnes. The close coordination among the processes, namely product development, smelting and casting, die and extrusion, and the advanced technologies applied is the Group's important source of competitiveness and outstanding features.
The Group is principally engaged in the production of high precision, large-section and high value-added industrial aluminium extrusion products which are widely used in the transportation sector (including railway passenger and cargo carriages, metropolitan rails, automobiles, heavy trucks, vessels, aviation and aerospace) as well as machinery equipment and electric power engineering fields.
In order to consolidate its leading position in the industrial aluminium extrusion industry, the Group will continue to focus on sectors such as transportation, machinery equipment and electric power engineering, with emphasis placed on the light-weight development towards the target of reducing energy consumption and achieving low carbon emission. 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.
To sum up, the Group strives to become a driving force for light-weight development in China to build a new and brighter future.
For further information on the Group, please visit www.zhongwang.com .