Shanxi Guanlu to Relist February 8 by Substituting Rare Earth for Aluminum-Shanghai Metals Market

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Shanxi Guanlu to Relist February 8 by Substituting Rare Earth for Aluminum

SMM Insight 01:04:59PM Feb 05, 2013 Source:SMM

SHANGHAI, Feb. 5 (SMM) – Shanxi Guanlu issued a notice February 1 that it will relist on February 8 by replacing aluminum and aluminum deep processing segment with rare earth business.  

According to the notice, aluminum and aluminum processing industries have been in the red since 2008 as the global financial crisis has led to falling prices and faltering demand. Shanxi Guanlu lost RMB 498 million, RMB 712 million and RMB 219 million, respectively in 2008, 2009 and 2010. Shares of the company were suspended from going public on the Shenzhen Stock Exchange from March 24, 2011. The company managed to post RMB 6.33 million in profits attributable to its parent company in 2011 by reducing costs and increasing efficiency. However, the company booked RMB -169.23 million in profits attributable to its parent company in 1H 2012 due to rising electricity prices and falling aluminum prices.    

In order to avoid delisting, the company decided to remove less profitable aluminum and aluminum processing business from its listed company. Meanwhile, rare earth companies including China Minmetals Rare Earth will inject rare earth assets with good-performance and great potential into Shanxi Guanlu to turn it into a large rare earth company with advanced technology, big market shares and great competitiveness. By doing so, the company’s asset quality and profitability will improve.      

Shanxi Guanlu will sell RMB 9.26 million of assets to Shanxi Shengyun. The assets to be sold by the company include 100% stakes at Shanxi Guanlu Haimen Electronic Aluminum Semis, 67.5% stakes at Shanghai Guanlv Economic & Trade Development, 100% stakes at Shanxi Guanlu International Trade, 49% stakes at Shanxi Shenghua Aluminum, and 80% stakes at Shanxi Guanlu Changzhou Hongfeng Metal Processing.   

Shanxi Shengyun, a wholly-owned subsidiary of Minmetals Aluminum, is a nonferrous metal processor. 
 

Key Words:  Shanxi Guanlu   rare earth   aluminum 

Shanxi Guanlu to Relist February 8 by Substituting Rare Earth for Aluminum

SMM Insight 01:04:59PM Feb 05, 2013 Source:SMM

SHANGHAI, Feb. 5 (SMM) – Shanxi Guanlu issued a notice February 1 that it will relist on February 8 by replacing aluminum and aluminum deep processing segment with rare earth business.  

According to the notice, aluminum and aluminum processing industries have been in the red since 2008 as the global financial crisis has led to falling prices and faltering demand. Shanxi Guanlu lost RMB 498 million, RMB 712 million and RMB 219 million, respectively in 2008, 2009 and 2010. Shares of the company were suspended from going public on the Shenzhen Stock Exchange from March 24, 2011. The company managed to post RMB 6.33 million in profits attributable to its parent company in 2011 by reducing costs and increasing efficiency. However, the company booked RMB -169.23 million in profits attributable to its parent company in 1H 2012 due to rising electricity prices and falling aluminum prices.    

In order to avoid delisting, the company decided to remove less profitable aluminum and aluminum processing business from its listed company. Meanwhile, rare earth companies including China Minmetals Rare Earth will inject rare earth assets with good-performance and great potential into Shanxi Guanlu to turn it into a large rare earth company with advanced technology, big market shares and great competitiveness. By doing so, the company’s asset quality and profitability will improve.      

Shanxi Guanlu will sell RMB 9.26 million of assets to Shanxi Shengyun. The assets to be sold by the company include 100% stakes at Shanxi Guanlu Haimen Electronic Aluminum Semis, 67.5% stakes at Shanghai Guanlv Economic & Trade Development, 100% stakes at Shanxi Guanlu International Trade, 49% stakes at Shanxi Shenghua Aluminum, and 80% stakes at Shanxi Guanlu Changzhou Hongfeng Metal Processing.   

Shanxi Shengyun, a wholly-owned subsidiary of Minmetals Aluminum, is a nonferrous metal processor. 
 

Key Words:  Shanxi Guanlu   rare earth   aluminum