Alcoa and CPI Finalize Agreement to Establish Joint Venture Company to Produce High-End Fabricated Aluminum Products
Thursday, Feb 23, 2012Alcoa (NYSE:AA) and China Power Investment Corporation (CPI) announced today they have finalized an agreement to establish a joint venture company to produce high-end fabricated aluminum products for the China market. Alcoa Chairman and CEO Klaus Kleinfeld and CPI President Lu Qizhou signed the agreement today in Beijing at the Great Hall of the People. Also attending the signing ceremony was U.S. ambassador to China Gary Locke. The new joint venture company, Alcoa CPI (China) Aluminum Investment Co. Ltd., will be majority owned and managed by Alcoa and based in Shanghai.
Today's announcement is the outcome of a Letter of Intent between the two companies signed in September 2011 to form the joint venture company.
"This is a significant milestone in the partnership we have forged with CPI leveraging our combined strengths to capture opportunities in the high-growth Chinese aluminum market," said Alcoa Chairman and CEO Klaus Kleinfeld. "This alliance will enhance Alcoa’s competitiveness and further position our businesses for continued profitable growth.”
“CPI is delighted to work with a global aluminum industry leader to produce high-end fabricated aluminum products to serve the fast growing and dynamic China market. We expect that this joint venture will enable CPI to extend its capabilities to the fabricated marketplace to enhance competiveness and to better serve our customers,” said CPI President Lu Qizhou.
The joint venture company will serve as a leading manufacturer of high-end fabricated aluminum products for the aerospace, automotive, commercial transportation, consumer electronics and packaging markets in China.