Chalco to expand production through M&A
12 March 2007
Aluminum Corp of China (Chalco) pledged to continue to expand its operations after posting a 67% jump in net profit for 2006 on the back of increased output, the Wall Street Journal reported. Net profit came to US$1.52 billion, up from US$906.63 million in 2005, as the company produced 8.83 million metric tons of alumina and 1.93 million metric tons of primary aluminum, a year-on-year rise of 23% and 84% respectively. Alumina is the raw material used to produce aluminum. CEO Xiao Yaqing said the company would be challenged by product price fluctuations, rising raw material costs and increased competition in the near term. As a result, it will seek to acquire aluminum enterprises in 2007 using funds raised through an A-share listing and other sources.