Chinalco makes further acquisition

Aluminum Corp of China (Chinalco), which is engaged in bauxite mining, alumina refining and aluminium smelting, has acquired a controlling interest in Northeast Light Alloy Co Ltd (NELA), for 1.2 billion yuan.

NELA, which is based in Harbin province, is a Chinese state-owned business best known for its operations in the defence sector, but also supplying aluminium and magnesium alloy for civilian uses.

Its Swan brand aluminium and alloy products are sold throughout China and exported to 24 countries and regions.

Under the terms of the agreement, Chinalco will participate in NELA’s restructuring by acquiring 75% of its assets, amounting to 1.6 billion yuan.

The remaining 25% of the company is reported to be held by the state-owned assets supervision and administration commission of the Harbin municipal government.

NELA was established in the 1950s with support from the former Soviet Union, it is now considered to be the country’s largest manufacturer of aluminium and magnesium alloy.

Following the acquisition, the business plans to attract new investment to install production lines capable of processing 120,000 tons annually in products such as large aluminium alloy plates.

Chinalco is China’s largest aluminium and alumina producer and this latest acquisition follows the takeover of Baotou Aluminum, which is based in Inner Mongolia, in July of this year.