Dutch aluminium producer buys in China

Vimetco, the Dutch-based producer of primary and processed aluminium products, said Wednesday that its majority-owned Henan Zhongfu Industry has agreed to buy all of Lifeng Aluminium for RMB266m (about US$30m).

Zhongfu shareholders still need to approve the deal, however.

Lifeng Aluminium is located in Linzhou, Henan Province, China. With a production capacity of 110,000 tonnes per year and power generation facilities of 110MW, its revenues came to RMB1.7bn (some US$228m) in 2006.

“The acquisition of Lifeng is a logical next step in our growth strategy and will further strengthen our position in the Chinese market as well as in the global aluminium industry,” explained Vimetco’s chief executive Christian Wust.