China’s biggest aluminium extrusions manufacturer Zhongwang Holdings has agreed to sell smelting business (Zhongwang Aluminium Material) to Yidian Luoyang for CNY4.6bn ($0.65bn)
Zhongwang Aluminium signed a share transfer agreement with Yidian Luoyang to sell 100pc shares of Zhongwang Aluminium Materials.
The business was valued at approximately CNY4.57bn as on June 30, 2019. In 2019, the company posted a loss after tax of 809,468 from a loss of CNY883mn in 2018.
Zhongwang Aluminium Materials is based in Liaoning province, northern China and has an annual smelting capacity of 800,000mt. Earlier, the company closed smelting units for maintenance and did not resume work after maintenance work. The company engages in the production of extrusions products used in construction, electronics and other industries.