ZHENGZHOU, Mar. 2 -- Aluminum Corporation of China (Chinalco) will likely trigger the state-owned economy recession and private-owned economy development, once its aluminum processing assets are sold to Henan Zhongfu Industry Co., Ltd. (SHSE: 600595).
Currently, Chinalco Henan Aluminum Fabrication Co., Ltd., one of the state-owned aluminum tycoon's subsidiaries, is in talks with Zhongfu Industry about transfer of the ownership in its cold rolling plant located in the northern Chinese city of Zhengzhou, Henan Province.
Insiders revealed that the Shanghai-listed company, as a Sino-foreign aluminum producer, intended to be the majority shareholder of a joint-stock firm built on the basis of the Zhengzhou factory, and that Chinalco would buy into the new entity with land and equipment.
The main reason for this on-going deal should be the great loss of Chinalco Henan Aluminum Fabrication. Being the first aluminum processing project Chinalco invested in Henan, the Zhengzhou cold rolling plant started trial operation in 2007, but its actual production capacity could not fulfill the requirements.