The JV will build a €70M fully integrated aluminium extrusion and fabrication facility in Chongqing, south west China. In addition it will establish R&D facilities to support the development of the rolling stock companies in China
Each party will have 50% shareholding in the new JV.
The establishment of the JV matches well the development of the high-speed train industry in China. According to the 12th Five-Year plan for 2011-2015, China intends to invest a total of RMB3.5tri in high-speed rail projects over the next five years.
The total length of China Railway high-speed will be more than 13000km by the end of 2012 and 18000km by the end of 2020.
It is expected that there will be in excess of 800 high-speed trains running to match this infrastructure investment. The train industry is regarded as a pillar industry in China, with positive spin-offs on several other industries.
Chalco and Sapa will use both parties’ existing facilities to start market in the near future. The new green-field plant is planned to be production in the beginning of 2013. Completion is expected during Q2 2011.