SHANGHAI, Mar. 25 (SMM) -- The strategic cooperation between Jiangxi Copper and Yantai Penghui Copper Industry Company is going on smoothly, according to the State-owned Assets Supervision and Administration Commission of Shandong province. Based on an agreement reached between the two companies, Jiangxi Copper will inject no less than RMB 800 million to Yantai Penghui Copper Industry Company, and the acquisition will be completed during 1H 2010. At present, Jiangxi Copper has an annual refined copper capacity of 900 kt, while Yantai Penghui Copper Industry Company has a refined copper capacity of 125 kt/yr.
Recently, a great deal of news concerning merger and acquisition in Chinese smelting industry has been released. SMM believes Jiangxi Copper's acquisition of Yantai Penghui Copper Industry Company is just the beginning of merger and acquisition in China's copper smelting industry. In the next 2 years, more companies will be involved in merger and acquisitions under the adjustment and revitalization plan of non-ferrous metals industry. In accordance with the plan, copper output at Chinese top 10 copper smelters should account for 90% of China's total by 2011, highlighting one goal of the revitalization plan is to improve the industry concentration ratio. In addition, the Central Government also encourages qualified enterprises to become stronger on the premise of sustainable development, so as to give full play to large-scale effect.
(Edited by SMM)