HONG KONG, Nov. 8, 2011 /PRNewswire-Asia/ -- The world's second largest industrial aluminium extrusion product developer and manufacturer and the biggest one in Asia and China, China Zhongwang Holdings Limited, ("China Zhongwang" or "the Company", together with its subsidiaries "the Group"; HKEx Stock code: 01333) today announced successful land bidding. Through Panjin Zhongwang Aluminium Co., Ltd. ("Panjin Zhongwang"), a wholly-owned subsidiary of the Company, it has won the bid for the land use right of two pieces of land (the "Land") in Panjin City, Liaoning Province through public auction at a total consideration of RMB643 million. The Land will be used for the construction of a new facility for the manufacturing of aluminium flat-rolled products in Panjin City.
The Land is situated in Liaobin Coastal Economic Zone, Panjin City, Liaoning Province. It has a total site area of approximately 4,431,667 square metres. The duration of the land use right of the Land is 50 years commencing on the date of delivery of the Land to Panjin Zhongwang upon signing of the Land Use Right Transfer Contracts.
Commenting on the successful bidding, Mr. Lu Changqing, Executive Director and Vice President of China Zhongwang, said, "We have been on the outlook to identify suitable locations for constructing a new facility for the manufacture of high-end aluminium flat rolled products. The large piece of land acquired in Panjin City facilitates our business expansion, now and also the future. The aluminium flat rolled business, being the keystone development for China Zhongwang in the next few years, is expected to commence production in phases starting from the second half of 2014 with designed annual production capacity of 1.8 million tonnes. We have entered into agreements with three large state-owned enterprises earlier through which we will import advanced equipment from countries such as Germany and the U.S. With the equipment and land ready as planned, the Group is developing this business in full gear."
The land acquisition is complementary to the aluminium flat-rolled equipment purchase plan announced on 17 October 2011. The Group will invest approximately USD3.8 billion (approximately HKD29.5 billion), payable in four installments between 2011 and 2014, for the purchase of hot continuous rolling mills and cold rolling mills for the production of medium-to-high thickness plate and sheet products, smelting and casting lines, quenching furnaces and heat treatment furnaces for the ancillary production of medium-to-high thickness plate and sheet products, and aluminium foil rolling mills, amongst others, for Phase I development of the aluminium flat-rolled manufacturing base which will have an annual production capacity of 1.8 million tonnes. It will form a new growth driver of the Group.
Mr. Lu Changqing revealed that manufacture of aluminium flat-rolled products is a technology driven and capital intensive industry. "On the technology front, China Zhongwang's solid aluminium alloy development and smelting and casting technologies from the industrial aluminium extrusion business put us in an advantageous position to capture market opportunities. As far as capital investment is concerned, the Group has made financial planning well in advance. Of the capital expenditure for aluminium flat rolled business, a large majority will be payable in 2013 and 2014. What's more, with over RMB19 billion on hand and sufficient credit facilities from banks, the Group has accumulated ample financial resources to fund its expansion. We are confident towards the aluminium flat-rolled business development."
About China Zhongwang Holdings Limited
China Zhongwang is the second largest industrial aluminium extrusion product developer and manufacturer in the world and the biggest one in Asia and China. Headquartered in Liaoning province, China, the Group has, over the years, committed itself to the energy-saving and light-weight development of, amongst others, transportation, machinery equipment and electric power engineering sectors through the provision of high quality industrial aluminium extrusion products.
After 18 years of dedication and hard work since its founding in 1993, the Group owned 75 leading aluminium extrusion production lines in the world as at 30 September 2011, of which the 125MN oil-driven dual action aluminium extrusion press is one of the largest and most advanced presses in China and in the world. It has built the world's leading aluminium tilt smelting and casting equipment in the industry, as well as the largest customized industrial aluminium extrusion product die design and manufacturing centre in Asia. The Group's annual production capacity as at 30 September 2011 was over 700,000 tonnes. The close coordination among the processes, namely product development, smelting and casting, die and extrusion, and the advanced technologies applied is the Group's important source of competitiveness and outstanding features.
The Group is principally engaged in the production of high precision, large-section and high value-added industrial aluminium extrusion products which are widely used in the transportation sector (including railway passenger and cargo carriages, metropolitan rails, automobiles, heavy trucks, vessels, aviation and aerospace) as well as machinery equipment and electric power engineering fields.
In order to consolidate its leading position in the industrial aluminium extrusion industry, the Group will continue to focus on sectors such as transportation, machinery equipment and electric power engineering, with emphasis placed on the light-weight development towards the target of reducing energy consumption and achieving low carbon emission. In addition, the Group plans to extend its business into the high value-added aluminium flat rolled product segment. This new business venture will not only enable the Group to further capitalize on its leading edge in aluminium alloy smelting and casting and product research and development, but also achieve synergies with its existing business by taking full advantage of its customer and market resources in related downstream application sectors.
To sum up, the Group strives to become a driving force for light-weight development in China to build a new and brighter future.
For further information on the Group, please visit www.zhongwang.com.
