SMM: on May 28, Chinalco and Yunnan State assets reached strategic cooperation. Yunnan Copper, Yunye Aluminum and Chihong Zinc Germanium, both owned by Chinalco, will be restructured with China Copper, which is owned by Chinalco, according to a simultaneous announcement by Yunnan Copper and Chihong Zinc Germanium, which are owned by Chinalco. This is the biggest integration of China's nonferrous industry at present. Chinalco said the consolidation will reach hundreds of billions of dollars, a major measure for China's supply-side structural reform of non-ferrous metals, and the most important strategic restructuring and integration of China's non-ferrous metals industry. There will be significant changes in the pattern of the global non-ferrous metals industry. Upon completion of the transaction, Yunal shares and Chihong Zinc and Germanium will be incorporated into Chinalco Group, upgrading from a local state-owned enterprise to a central enterprise.
China's copper industry, the main platform for the strategic restructuring, was Chinalco's early layout in Yunnan, a resource-rich province. Founded in August 2008 with a registered capital of 3.235 billion yuan, China Copper Group is a wholly owned subsidiary of Chinalco and one of the three major business sector companies. "through this cooperation, the two sides will give full play to their respective advantages and build China Copper Co., Ltd., which is based in Yunnan, into a world-class enterprise with global competitiveness. At the same time, we will further enhance the voice and influence of Chinalco in non-ferrous metal resources and products such as aluminum, copper, lead and zinc in the world. " Chinalco official website pointed out.
This integration, the smelting capacity of Chinalco will undergo tremendous changes. Chinalco's aluminum smelting capacity at the end of 2017 was 3.93 million tons a year, according to the annual report. (China Hongqiao Group), the private Chinese Hongqiao group, the world's largest aluminium producer, had capacity of 6.46 million tonnes at the end of 2017. The integrated Chinalco will narrow the gap with Hongqiao in China and then obtain more smelting capacity.
"in the past two years, there have been more and more cases of cooperation between the central and local governments in the form of reorganization or mixed reform, which has become a trend. The reason is that the central enterprises have strong financial strength and local governments have the advantage of resources, so a beat can be made. " In the final analysis, Chinalco's choice of enterprise integration in Yunnan lies in the rich mineral resources in Yunnan, known as the "kingdom of non-ferrous metals". However, the local economic level is relatively backward and the capital strength of the two enterprises is inadequate. the merger of the two enterprises into state-owned enterprises is of extraordinary significance to the expansion of Chinalco's scale and the development of Yunalco shares and Chihong zinc and germanium.