China's Zhongfu to buy mid-sized aluminium producer
SHANGHAI, Nov 6 (Reuters) - China's Zhongfu Industrial Co Ltd (600595.SS), a mid-sized aluminium smelter that is controlled by Dutch-based Vimetco (VICOq.L), plans to acquire Linfeng Aluminium Co, boosting its production capacity by 36 percent.
Zhongfu Industrial, based in the central province of Henan, said on Tuesday it would pay 26 million yuan ($3.5 million) in cash for Linfeng Aluminium, which has 110,000 tonnes of annual production capacity for primary aluminium.
Zhongfu Industrial's current annual capacity is 308,000 tonnes.
Linfeng Aluminium, based in Linzhou in Henan province, also produces aluminium bars and aluminium alloy bars, and has installed electric power generating capacity of 110 megawatts.
Earlier this year, the parent companies of Zhongfu Industrial, Hongkong Aluminium Co and Shenhuo Coal Industry & Electricity Power Co Ltd 000933.SZ set up Henan Nonferrous, which controls 1.31 million tonnes of primary aluminium production capacity and is the country's second-largest producer after Aluminum Corp of China Ltd (2600.HK)(601600.SS). (For details see [ID:nHKG16952]) ($1=7.453 Yuan)
