China-based Chalco purchased 10.4pc stake in Yunnan Aluminium for CNY1.5bn ($213.64mn) to consolidate capacity its aluminium production capacity in the domestic market.
Chalco and Yunnan signed the stake acquisition contract on Dec 19. Yunnan Aluminium has an annual production capacity of 2.1mn mt of primary aluminium. It’s output in the first half of 2019 was 866,000mt. Chalco produced 1.89mn mt of aluminium in the Jan-Jun period.
Chalco and Yunnan are both subsidiaries of Chinalco, which had announced its plans of integrating the two companies to strengthen its footprint in the domestic market.