JV company to serve growing aerospace, automotive, commercial transportation, consumer electronics and packaging markets
NEW YORK & BEIJING--Alcoa (NYSE:AA) and China Power Investment Corporation (CPI) announced today they have finalized an agreement to establish a joint venture company to produce high-end fabricated aluminum products for the China market. Alcoa Chairman and CEO Klaus Kleinfeld and CPI President Lu Qizhou signed the agreement today in Beijing at the Great Hall of the People. Also attending the signing ceremony was U.S. ambassador to China Gary Locke. The new joint venture company, Alcoa CPI (China) Aluminum Investment Co. Ltd., will be majority owned and managed by Alcoa and based in Shanghai.
Today's announcement is the outcome of a Letter of Intent between the two companies signed in September 2011 to form the joint venture company.
"This is a significant milestone in the partnership we have forged with CPI leveraging our combined strengths to capture opportunities in the high-growth Chinese aluminum market," said Alcoa Chairman and CEO Klaus Kleinfeld. "This alliance will enhance Alcoa’s competitiveness and further position our businesses for continued profitable growth.”
“CPI is delighted to work with a global aluminum industry leader to produce high-end fabricated aluminum products to serve the fast growing and dynamic China market. We expect that this joint venture will enable CPI to extend its capabilities to the fabricated marketplace to enhance competiveness and to better serve our customers,” said CPI President Lu Qizhou.
The joint venture company will serve as a leading manufacturer of high-end fabricated aluminum products for the aerospace, automotive, commercial transportation, consumer electronics and packaging markets in China.
Terms of the agreement were not disclosed.
The relationship between Alcoa and CPI was formalized in January 2011, when the two companies signed a Memorandum of Understanding for cooperation on projects in China and around the world during Chinese President's Hu Jintao's State visit to Washington, D.C.
Alcoa is the world’s leading producer of primary aluminum, fabricated aluminum and alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for ten consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at www.alcoa.com.
China Power Investment Corporation (CPI) is one of the five Gencos in China and a comprehensive energy group integrating industries of power, coal, aluminum, railway and port. It is the only enterprise in China possessing assets in hydropower, thermal power, nuclear power and new energies at the same time, and is one of the three companies in China that are authorized to develop, build and operate nuclear power plants. By the end of 2011, CPI had installed capacity of 76.8GW, of which 17.95GW was hydropower, which ranked first among the five Gencos. Clean energy accounted for 30% of the total portfolio, the highest among the five Gencos. Meanwhile, CPI had coal production capacity of 73.5 million tons and aluminum production capacity of 2.6 million tons. More information can be found at www.cpicorp.com.cn.