Zhongwang Holdings takes controlling stake in German aluminum company

China Zhongwang Holdings Ltd. has announced acquiring a controlling stake in Unna, Germany-based Aluminiumwerk Unna AG (ALUnna), a producer of extruded aluminum tubes.

Zhongwang, which describes itself as the world’s second-largest aluminum extruder, says it will acquire a 99 percent equity interest in ALUnna. The acquisition is being made through Zhongwang’s wholly-owned German subsidiary, Zhongwang Aluminium Deutschland GmbH, according to the company.

On its website, ALUnna refers to itself as a manufacturer of “a comprehensive range of specialist aluminum alloy products” at a facility near Dortmund, Germany, that it describes as “fully integrated and includes a cast house, extrusion plant, heat treatment ovens and tube drawing and cutting equipment.”

“The acquisition marks a milestone in our international expansion and a major step in complementing the company’s business,” says Lu Changqing, president and executive director of China Zhongwang. “The transaction would also substantially enhance China Zhongwang’s production capability in seamless extruded aluminum tubes for further optimizing our product mix. Furthermore, with ALUnna’s product quality credentials and experience in customer development, the acquisition will expedite the Group’s business expansion into, among others, [the] aviation and automobile industries, therefore enhancing the group’s overall competitiveness.”

Says Thomas Wiese, CEO of ALUnna, “Being the world’s second largest aluminum extruder, China Zhongwang will provide us additional resources to expand our operations and propel long-term growth, to reinforce our international reputation and recognition and to strengthen our position as a world-leading supplier. ALUnna together with China Zhongwang have the goal of continuing to generate lasting values for customers, partners, employees and shareholders worldwide.”

China Zhongwang says it has been “strategically unfolding its global foothold” and that It has set up sales offices in Germany and Japan to support its overseas business. ALUnna has an existing sales office in Aurora, Colorado.

Another Zhongwang-affiliated company, Zhongwang USA, is still attempting to finalize its acquisition of Cleveland-based aluminum producer Aleris Inc. The transaction, which was announced in August 2016, may have met with some political opposition in the U.S. Zhongwang USA is reportedly owned by Liu Zhongtian, the chairman of China Zhongwang Holdings, but it is not part of the same company.