Feb 21 (Reuters) - Alcoa Inc and China Power Investment Corp (CPI) said on Tuesday they agreed to establish a joint venture company to produce high-end fabricated aluminum products for the Chinese market.
Alcoa Chairman and Chief Executive Officer Klaus Kleinfeld and CPI President Lu Qizhou signed the agreement in Beijing to set up Alcoa CPI (China) Aluminum Investment Co. Ltd, which will be majority owned and managed by the U.S. aluminum producer and based in Shanghai.
"This alliance will enhance Alcoa`s competitiveness and further position our businesses for continued profitable growth," said Kleinfeld.
The joint venture company will serve as a leading manufacturer of high-end fabricated aluminum products for the aerospace, automotive, commercial transportation, consumer electronics and packaging markets in China, the companies said.
Terms of the agreement were not disclosed.
Alcoa stock was 3.3 percent higher at $10.49 in morning trading on the New York Stock Exchange.