Mongolia-based Baotou Aluminum is aiming to raise RMB 600 million via a Shanghai A-share listing in the first quarter of 2004 to fund its plan to bolster capacity by about 50%. Through a state asset transfer earlier in 2003, Baotou Aluminum became a subsidiary of the country’s largest aluminum producer, China Aluminum Group, the parent of Aluminum Corp of China (Chalco).
In August, Baotou Aluminum signed an agreement with French aluminum firm Pechiney to build a US$13 million, 5,000 ton-a-year high-purity aluminum plant in Baotou. Pechiney has a 51% stake in the JV and Baotou Aluminum owns the rest.
Sharp rises in alumina prices due to tight global supply and power shortages are expected to lead to consolidation among China’s 135 aluminum producers. China is the world’s largest aluminum producer.