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| Chinalco Sees More Profit |
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Aluminum Corp of China (Chinalco), the nation's largest alumina and aluminum producer, recorded 22.5 billion yuan in net profit last year, an increase of 18.1 billion yuan over its profit posted three years ago. Chinalco Vice-President Lu Youqing said that the company's sales revenue was 105.5 billion yuan in 2006, an increase of 74.5 billion yuan compared to 2003. The company plans to list on the domestic stock market, but Lu noted they are still awaiting regulatory approval. Last December the Hong Kong and New York-listed company offered an 8.17 billion yuan stock swap for remaining shares it does not own in Shanghai-listed Lanzhou Aluminum Co and Shandong Aluminum Industry Co. "The move, which is a very important step in our process to trade our A shares on the Shanghai Stock Exchange, will further boost the company's development," said Lu. Last year the company's output of alumina, a raw material for making aluminium and abrasives, increased 59 percent compared to 2003, while finished aluminum showed 208 percent growth over the same period. Production of alumina has accounted for about 60 percent of Chinalco's profit, said Lu, adding that the company will increase its alumina production by opening new manufacturing facilities. In 2006 Chinalco started two alumina plants in Chongqing Municipality and Zunyi in southwest China's Guizhou Province. This year it will build another new alumina plant in north China's Shanxi Province. Many local companies began to produce alumina in 2006, causing a sharp drop in price. As a result, Lu said Chinalco has worked hard to reduce its costs in the alumina production process. Lu said that now Chinalco is integrating aluminum production companies it acquired over the past few years. Last year it bought a series of companies such as the Fushun Aluminum Co to increase its aluminum productivity. "This year we will make no major mergers and acquisitions in our aluminum business. What is more important, we will pay more attention to integrating the companies we bought," he said. Apart from the domestic market, the company is also exploring overseas markets such as Brazil, Australia, Vietnam and Guinea. It has won a bid to build a bauxite mine and refinery in the Australian state of Queensland. (China Daily January 17, 2007) |
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