Specialty aluminium packaging company Alcan has formed an agreement to set up a joint venture with leading Chinese aluminium company Qingtongxia Aluminum Company (QTX) for participation in its smelter.
Construction of the Qingtongxia smelter was completed in 1999 and it was fully commissioned in 2001. The smelter currently uses modern prebake technology and the proposed expansion will also be outfitted with modern prebake technology.
The proposed joint venture will provide an opportunity for Alcan to acquire a 50 per cent ownership position in the 130kt-aluminum smelter located in the Ningxia Autonomous Region, China. In addition, Alcan has an option to secure a 50 per cent interest in the planned and approved 150kt expansion of this smelter.
Cynthia Carroll, president of Alcan Primary Metal Group, said : "this initiative offers substantial opportunities for Alcan to increase shareholder value by participating in the fastest growing aluminum market in the world."
Alcan had 2001 revenues of US$12.6 billion.