China starts to recapitalize assets of aluminum industry

China has set out to recapitalize the assets of the aluminum industry in preparation for the listing of aluminum enterprises, according to Guo Shengkun, deputy director of the State Bureau of Nonferrous Metals Industry and leader of the preparatory group for the establishment of the China Aluminum Corp.

Guo said that the State Council has agreed in principle that China Aluminium will be listed abroad as a whole. The conversion of the whole industry into a joint stock company and getting a listing abroad will provide a good opportunity for the overall reform of the industry. The capital diversification and internationalized operation will lay a good foundation for the China Aluminum Corp. to become a multinational corporation.

By restructuring the capital and organization, all aluminum enterprises will form an entity and operate as such, thus making it better able to resist acquisition by foreign giants and the impact of alumina imports.

After the adjustment of the nonferrous management system, the China Aluminum Corp. has amassed some 70% of the assets, 90% of the profits and 50% of the personnel.

It is planned that the China Aluminum Corp. will incorporate the Great Wall Aluminium Company, the Shandong Aluminium Company, the Shanxi Aluminium Plant, the Guizhou Aluminium Plant, the Pingguo Aluminium Company, the Qinghai Aluminium Co., Ltd., the Zhongzhou Aluminium Plant, the Shanxi Carbon Plant, and Zhengzhou Light Metal Institute.

(XIC)