BEIJING, June 12 (InfoChina) – Aluminum Corp of China (Chalco, ACH.NYSE, 2600.HK, 601600.SH) seems to start integrating the primary aluminum business of Baotou Aluminum (600472.SH), as both companies announced Tuesday the suspension of their share trading beginning from Tuesday for pending disclosure of significant matter, which triggered this market guess.
Chinalco, the parent company of Chalco, promised in the prospectus of Chalco’s A share IPO, that it would inject good-quality assets into the listing company so as to help Chalco streamline its production line and eliminate competition of the same industry.
Baotou Aluminum is regarded as one of these assets. Chinalco owns 80 percent stake in Baotou Aluminum Group, the parent company of Baotou Aluminum. Therefore, Chinalco so far holds a 56.09 percent stake in Baotou Aluminum.
Aside from Baotou Aluminum, Chinalco still has two primary aluminum subsidiaries, namely Liancheng Aluminum and Tongchuan Xinguang Aluminum. The three subsidiaries have a primary aluminum production capacity of 732,000 tons and produced 651,500 tons in 2006, as against 2.4812 million tons and 1.936 million tons of Chalco.
Chalco tends to buy out Liancheng Aluminum’s primary aluminum sector by the end of 2007. It also plans to eliminate competition in the same industry with Tongchuan Xinguang within one year after its A-share listing. (Edited by Li Xueqing,
)
China Stock News 
