Japan’s UACJ Corporation has signed an agreement with China-based CITIC Group Corporation to form a JV with two CITIC Group subsidiaries, CITIC Bohai Aluminum Industries and CITIC Dicastal that make aluminium automotive components. The joint venture company will manufacture and sale extruded aluminium parts and components for automobiles.
The new company will begin operation with manufacturing of vehicle bumpers and battery casings, using UACJ Group’s machining technologies and research and development teams at its R&D Center. The company will have the support of the CITIC Dicastal’s leading presence in China’s auto parts market as the world’s number-one producer of automotive aluminium wheels. The new company will serve as a supply center for automakers and auto parts manufacturers in the Chinese market and also market its own automotive parts and components.
The focus on lightweighting and shift towards electro-mobility to cater to stricter fuel economy and environmental standards has driven demand for aluminium in recent years. China is forecasted to produce 35 million vehicles by 2025 and electric vehicles would account for about seven million or 20% of the total. Use of aluminium components are going to increase in EVs for keeping the weight in check. The use of aluminium automotive body sheet as well as other components is expected to increase in the coming years.
The UACJ Group has already established aluminium automotive facilities in the US and Japan. The group aims to meet the growing automotive demand in the Chinese market by expanding its facilities in China and form a global supply network of high-quality automotive aluminium components.
Responses
