Recently, purchasing officers from BMW (China) and Benz (China) paid a visit to China Zhongwang, exchanging views on further collaboration with the management.
Representatives from the two automotive Companies stated, “light-weight development has become a trend in the global transportation sector and also the development goal of BMW and Benz. With the remarkable strength showcased by China Zhongwang in its production equipment and the strong R&D for aluminium processed products, we are looking forward to future collaboration.”
Recently, research reports on lightweight development in transportation issued by Founder Securities and Huatai Securities are bullish on the automotive aluminium outlook. Automotive aluminium can basically be divided into two types, die-cast aluminum alloy and wrought aluminum alloy. The former one accounts for 80% of the total while the latter one, comprised of extruded products and flat-rolled products, accounts for 10% each. The technical requirements for processing automotive aluminium components, especially those used for the car body and joint parts are stringent. Companies must go through a rigorous accreditation process and accumulate extensive experience in advance, in order to be recognized by the mainstream automotive companies.
According to the Group’s results for the first three quarters of 2014, revenue increased 12.6% to approximately RMB12.31 billion during the review period. Sales volume of the Group’s aluminium extrusion products rose 15.9% to approximately 574,000 tonnes year-on-year. Among these, sales of deep-processed products amounted to approximately 51,000 tonnes, representing 9% of the total sales volume and accounting for 11.2% of the total revenue. The Group has successfully developed high value-added deep-processed products with promising market potentials, such as aluminium-intensive fire trucks, refuse collection vehicles, semi-trailers, oil tank trucks and railway carriages. These products have attracted enormous attention from the market as they can bring long-term economic benefits to customers. Construction of the plant and installation of the production lines for the Group’s project of high-end aluminium flat rolled products is progressing on schedule. The first production line is expected to commence operation in the second half of 2015, thus marking the formal entry of the Group into the high-end aluminium flat rolled business.
Relevant officials stated that on the back of China Zhongwang’s extensive R&D experience over the years in aluminium extrusion products and its state-of-art production equipment, the Group would continue to seize opportunities from light-weight development in the transportation sector and industry upgrade.
