China Zhongwang is getting out of the anti-dumping and countervailing worries with excellent performance in its China market, National Business Daily reported.

China Zhongwang Holdings Ltd. (“China Zhongwang”; stock code: 01333), a leading industrial aluminium extrusion manufacturer in China, announced its interim results on August 12. While revenue fell significantly compared to the same period last year, China started to become a major income source as well as a growth driver for the company, helping the company out of its bottom, the report said. China Zhongwang continues to develop its high-end flat-rolled aluminium business and has initially decided on a location for its high-precision flat-rolled aluminium project with a production capacity of three million tonnes. The project is expected to be completed in 2014.

Quarterly Results Improve
　
China Zhongwang saw improved quarterly results, with sales for the second quarter surging 87% to RMB2.78 billion. Sales in the China market soared 94%, which drove the profit attributable to shareholders of the company up 50% to RMB247 million for the quarter. 

China Zhongwang has shifted 40% of its U.S. market share to China. “By increasing its domestic market share as well as the proportion of high value-added products, the company relieved the impact of the U.S. anti-dumping and countervailing investigation on Chinese aluminium exports,” said the company in its interim report.

China Zhongwang is a leading industrial aluminium extrusion manufacturer in China having 75 aluminium extrusion presses, of which the 125MN oil-driven dual action extrusion press is the most advanced in the world. The company’s annual production capacity has exceeded 700,000 tonnes. In the first half of 2011, sales from the China market increased 58% year-on-year, becoming a major source of income and profit for the company.

Lu Changqing, Executive Director and Vice President of China Zhongwang, said the company will further strengthen its productivity and profitability for large-section industrial extrusions and related products. ”From now through 2012 we will add a total of 18 75MN extrusion presses, including three 125MN extrusion presses. Two of the 75MN presses have been installed and started operations, whereas the new 125MN presses are being installed.”

China Zhongwang is expected to have an annual production capacity of more than one million tonnes upon completion of the installation.

Location of Three-million High-precision Flat Rolled Aluminium Project Selected

As a high value-added deep-processed aluminium product manufacturer, China Zhongwang strives to tap the high-end flat rolled aluminium business.

It has been reported on August 12 that China Zhongwang completed the construction of its industrial aluminium deep-processing plant and has started to install equipment. “The deep-processing center is expected to be the group’s new growth driver after it begins operations,” said the company.

The public affairs department of China Zhongwang revealed that the company will focus on the development of the high value-added flat rolled aluminium business in Tianjin, Liaoning’s Panjin and Heilongjiang’s Daqing,” said a spokesperson of the division on August 12.  

Flat rolled aluminium products include medium-thick plates, high-end foils and high-end strips for use in aviation and aerospace, ships, rail transport, automobile, machinery and equipment, packaging and electronics. The applications and clientele are closely related to the industrial aluminum extrusion industry.  

The U.S. anti-dumping and countervailing investigations would not affect China Zhongwang’s expansion plans, Lu said. “The group will leverage its advanced facilities and technology, core competitiveness and advantages in alloy smelting, extrusion, mold design and R&D to optimize its production capacity, increase its capabilities in high-end manufacturing and deep-processing and expand its high-end aluminium extrusion and flat rolled product businesses at home and abroad, laying a solid foundation for the group’s profit growth.”

The flat rolled aluminium production line is expected to commence production in 2014 and operate at full capacity in 2018.