Chalco, the aluminium corporation of China, recently announced the establishment of a joint venture between Chalco Zhengzhou Nonferrous Metals Research Institute Co., Ltd. and Zhengzhou Light Metals Research Institute Co., LTD.
As per the announcement, the joint venture company, named Chalco Testing Technology (Zhengzhou) Limited Company (provisional name), will receive a total investment of RMB 25 million.
The investment will come from Chalco Zhengzhou Nonferrous Metals Research Institute Co., LTD. (Zhengzhou Research Institute), which is Chalco's wholly-owned subsidiary, and Zhengzhou Light Metals Research Institute Co., LTD. (Zhengzhou Light Research Institute), a subsidiary of Chalco Group, the controlling shareholder of Chalco.
Zhengzhou Research Institute will contribute RMB 20 million in cash and assets for the joint venture company and hold 80% of its equity. The final name of the joint venture company depends on the approval of the industrial and commercial registration authority.
As Zhengzhou Light Research Institute is a subsidiary of Chalco Group and a related party of the company, this transaction is considered an affiliated transaction. However, this connected transaction does not require submission to the company's general meeting for consideration.
If you wish to know more about the global aluminium market, have a look at AL Circle's special report, Global Aluminium Industry Key Trends to 2030.
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