China Zhongwang sells aluminium business amid higher electricity costs

China Zhongwang holdings - the largest aluminium extrusion company in Asia - has announced it sold 100% equity interests of its direct wholly-owned subsidy Zhongwang Aluminum Material to Yidian Luoyang, according to a document found by Fastmarkets in Hong Kong Exchanges' website earlier in the week starting March 2.

Yidian Luoyang procured the aluminium business at a consideration of 4.6 billion yuan ($0.66 billion) due to the high cost of electricity and persistent loss-making in recent years.
Zhonwang Aluminum Material recorded a net loss of 883,055,000 yuan and 809,468,000 yuan in the year ended on 31 December, 2018 and 2019 respectively, the document said.
"No doubt [Zhongwang] would sell it because they can't continue running the aluminium business at such a loss," an aluminum trader in eastern China said.

Market participants said Zhongwang's aluminium production costs...

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