Pechiney and the Baotou Aluminium Company have formed a joint venture to construct a new high purity aluminium production facility in Baotou, Outer Mongolia.
The new plant will use Pechiney’s patented technology for segregation of high-grade aluminium, which is already being used in the company’s facility in Mercus, France.
Pechiney and Baotou Aluminium will have a 51% and 49% ownership of the new company, repectively. The total value of their joint investment is $13 million, and after a start-up period, turnover is expected to be around $12 million.
The construction of the new facility should begin this autumn and first production is expected in October 2004, with an initial production capacity of 5000 tons.
The project is still subject to approval from the Chinese authorities.