As a private enterprise, China Zhongwang had a production capacity of about 600000 tons in 2009, accounting for 6.2% of the global market share. It is the second largest industrial aluminum profile manufacturer in the world, second only to Sweden's Sapa Company. According to the 2009 annual report, China Zhongwang achieved a revenue of 13.853 billion yuan, with a net profit of 3.529 billion yuan, a year-on-year increase of 84.7%. In the later disclosed first quarter report of this year, Zhongwang achieved a net profit of 1.312 billion yuan, a year-on-year increase of 65.1%. Among them, the percentage of overseas sales to sales revenue increased from 14% in the same period of 2009 to 71.4% in the first quarter of this year.
In the post financial crisis era, achieving such impressive results, Zhongwang is worthy of respect.
Recently, it was reported that Sapa, the world's largest aluminum profile manufacturer, has teamed up with Aluminum Corporation of China to invest 50% each in establishing a company that produces aluminum extruded materials to explore the domestic high-speed rail market. The media has speculated that Chinalco's move may be suspected of inviting wolves into the house, with the underlying purpose of "squeezing the strong upward trend of China Zhongwang".
But the so-called "attracting wolves" is not necessarily a bad thing: China Aluminum Corporation, established in 2001, is currently the largest producer of primary aluminum and aluminum oxide in China. However, compared to Zhongwang, established in 1993, it still appears relatively weak in the high-end aluminum profile production field (automobiles, trucks, boats, solar equipment). If we can cooperate with the world's largest aluminum profile manufacturer, introduce advanced technology, shift China Aluminum towards downstream high value-added products, and improve the industrial chain, wouldn't it be a good thing?
On July 22, the Chinese Ministry of Commerce published an article stating that since joining the WTO in 2001, China has fulfilled all commitments made upon joining the WTO. China has established an economic and trade system that meets the requirements of rules and has become one of the most open markets in the world. Therefore, in today's fleeting market, the move of Chinalco to join hands with Sapa to build a factory is completely a market behavior, which meets the "structural adjustment" requirements proposed by the Chinese government.