Yunnan Metallurgical Group Inks Agreement to Buy Alcoa Shanghai

SHANGHAI, Aug. 14 -- Yunnan Metallurgical Group Co. (YMG) has signed an agreement with Alcoa Aluminum Products Co. to acquire a 100 percent stake in the latter's Shanghai branch.

    The deal still needs government's nods. The approval procedures are expected to be finished in October.

    Alcoa Shanghai was a fully owned subsidiary of Alcoa, with registered capital of 25 million U.S. dollars. It is specialized in aluminum foil production and has market shares in China, Europe, Middle East, Southeast Asia and South Asia.

    YMG is a leading nonferrous metals enterprise in China focusing on production of aluminum, lead and zinc, manganese, titanium, and silicon. It targets to achieve sales revenue of 100 billion yuan by 2015.

    Dong Ying, board chairman of YMG, said that after acquisition, Alcoa Shanghai will become a wholly-owned subsidiary of Yunnan Xinmeilu Aluminum Foil Co., a joint venture by YMG, Yunnan Zhongyan Wuzi Co. and Alcoa,According to some sources, YMG will add capital injection to Yunnan Xinmeilu Aluminum Foil to obtain a controlling stake in the latter.

    (Source: chinamining.org)