China’s Henan Shenhuo will take 36pc stake in a company engaged in manufacturing of alumina in Guanxi region to reduce its reliance on external purchase of alumina.
China’s Henan Shenhuo Coal and Power company has aluminium production business in Yunan region. This company is located near Guangxi in Southwest China. Schenhuo company, in its filing to the Shenzhen Stock Exchange on Tuesday, said that the company will not pay for its stake for Longzhou Aluminium owned by Hangzhou Jinjiang. Shenhuo will consider investment responsibilities.
The first phase of construction at Guangxu Longzhou alumina plant started in Nov 2019 with the investment of CNY3.12bn ($450mn). Once completed, the plant will produce 1mn mt of alumina per year. Guangxi Longzhou is abundant in bauxite resources, the filings mentioned.
Shenhuo can increase its stake up to 51pc. Hangzhou Jinjiang will retain 34pc, Guanxi Jianzhuo Asset Management will retain 20pc and, Guangxi Longzhou County Industrial Transportation Investment will retain 10pc of stakes.