Wednesday, 15 May 2013

Commodities Buzz: CHALCO Plans To Sell Aluminium Processing Assets

Aluminum Corporation of China Limited (Chalco), the country's biggest aluminum producer by output, announced plans recently to sell its aluminum processing assets, a development which underlines the industry's vexing overcapacity problems.
Chalco intends to transfer stakes in eight subsidiaries valued at 2.09 billion yuan ($340.3 million) through the Beijing Equity Exchange, according to a filing the aluminum producer submitted to the Shanghai Stock Exchange Friday.
Friday also saw Chalco issue notices saying that it will sell off complete ownership rights in its northwest aluminum processing branch as well as the alumina production lines at its Guizhou branch to Chinalco, assets which were evaluated at 1.66 billion yuan and 4.43 billion yuan respectively at the end of last year.
Chalco wrote down a record loss of 8.23 billion yuan, a portion of which was attributed to several of the holdings it slated for sale last week. Chalco's tepid performance has carried up to the first quarter, when the company added another 975 million yuan in losses to its accounts.
Source by Commodity Insights

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