Recently, China Zhongwang has introduced two sets of stretching equipment with advanced functions for extrusion product, in order to further enhance the processing capability. A number of securities institutions are bullish on China Zhongwang’s outlook, stating that surging growth of automotive aluminium will benefit leading companies in the industry.

With the ever increasingly stringent environmental regulations, the trend towards lightweight vehicles is inevitable. In the Detroit Auto Show at the beginning of this year, Ford unveiled its new 2015 F-150, the world"s first aluminium mass-produced vehicle, marking a new era of aluminium automotives. At present, there’s less than 1% of all vehicles in North America adopted all-aluminium bodies, and the global percentage is even far less than 1%. According to HIS Automotive, the production volume of passenger vehicles globally in 2013 is 82.8 million vehicles. It is estimated that by 2025, 30% of vehicles will adopt all-aluminium bodies globally. An estimated 350kg of aluminum would be used to build the body of a full-size passenger car, and the demand for car aluminium will be increased by 8.7 million tonnes. In order to meet the new demand, the aluminium industry for car bodies will see explosive growth.

The aluminium usage in passenger cars has been increasing rapidly in North America. As North American automakers embrace aluminium in car making, it would spur China and other countries’ counterpart to follow suit. In 2013, China produced 22 million vehicles, ranking as the first in the world, but the current average aluminium content is about 15% lower than that of developed countries. 

Aluminium alloy parts for automobile, especially for the body and the connecting parts, have a very high requirement for the processing technology. To enter the supply chain of major automobile manufacturers, aluminium suppliers must first pass the stringent certification, which requires years of production technology and processing techniques. This opportunity only belongs to leading aluminium enterprises.

China Zhongwang is the biggest industrial aluminium extrusion manufacturer in Asia and China, the second largest in the world. According to 2014 interim report, the sales of its deep-processed industrial aluminium extrusion products increased by 39.2% to approximately 37,000 tonnes in volume, and by 36.0% to approximately RMB990 million. As the deep-processing center was put into operation in 2013, the group has developed a series of aluminium alloy transportation model such as aluminium fire trucks, garbage trucks, semi-trailers and high-speed train carriage bodies suitable for alpine cold regions. 

Since 2011, based on the original industrial aluminium business, China Zhongwang has extended to the deep-processing business, and implemented the development plan of aluminium flat rolled business.

A representative of China Zhongwang said: "against the backdrop of increasing demand for high-end industrial aluminium products, the Group will fully tap the market potential, while strengthening deep-processing business, and actively expanding aluminium flat rolled business which has synergistic effect with the industrial aluminium business, to build a sustainable growth model.