HONG KONG, July 21 -- Aluminum Corp of China Ltd (Chalco) (2600.HK: Quote)(601600.SS: Quote), China's biggest aluminium maker, and Europe's Sapa AB said on Wednesday they have agreed to form a joint venture to serve China's rolling stock market.
The two companies had signed a memorandum of understanding, and aimed to finalise plans for construction of a facility in southern China by the fourth quarter, Sapa, the world's largest aluminium extrusion company, said in a statement.
They said the venture would be a 50-50 endeavour, but did not disclose financial details.
The joint venture's aluminium extrusion and fabrication facility would include the latest technology for press and fabrication capabilities, according to the two sides.
Products could be launched by as early as the first quarter of 2011 using existing subsidiaries, Sapa added.
"The Chinese rolling stock industry has seen a very strong development both in terms of volume and technology," said the companies. "The joint venture will be able to meet current needs as well as serving the rapidly increasing technical demands of the rolling stock industry."