On July 23, 2011, Mr. Lee Kyu-Chul, President of Alux Company, a leading producer of aluminum forging wheels in Korea, together with two other delegates, visited Liaoning Zhongwang Group. President Lee highly commended Zhongwang’s solid foundation with respect to the production of industrial aluminium extrusion products when touring around Zhongwang’s manufacturing base. The executives of the both sides had an in-depth discussion and exchanged ideas on various topics. Both companies saw enormous potential for fostering cooperation to integrate technology and resources and jointly tap opportunities under the light-weight development trend of the automobile industry.
Aluminium alloy forging wheels have been widely used in the transportation sector in many countries. In China where steel wheels are commonly used, the replacement trend is inevitable – aluminium forging wheels are expected to overtake its steel counterparts in domestically produced sedan, light trucks and motorbikes, as these light weight high-precision products can reduce fuel consumption, minimise mal-shaping under high-speed rotation and lower friction. Also, aluminium alloy has outstanding heat emission property which helps enhance the mechanical performance and safety of automobiles.
In tandem with the rapid development of the China automobile industry, the forging wheel market in China is expected to experience high growth. An increasing number of Korean forging wheel companies have been turning their focus to the China market. Back in 2007, Dongguk Corporation and Business Association, the largest aluminium alloy forging wheel manufacturer in Asia and the world"s fifth largest, developed a project for the production of forging wheels for automobiles in Qingdao. In 2010, Dongguk Corporation further invested US$ 35 million for the second phase expansion. The annual production capacity is expected to reach 4 million with annual output of US$10 billion. This will make Dongguk a leading aluminium forging wheel manufacturer which is the largest in Asia and the second largest in the world.
President Lee of Alux Company believes that Liaoning Zhongwang, the 2nd largest industrial aluminium product developer and manufacturer in the world and the largest in Asia and China, has unlimited growth potential. As China and Korea are neighboring countries with close economic corporation, Alux and Liaoning Zhongwang have developed close ties which provided a solid ground for both sides to explore further cooperation opportunities. Both companies look forward to fostering cooperation in future.
