Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

China s Chalco says loss expected

SHANGHAI, Mar 30 – Chinese aluminium giant Chalco said on Monday it expected to post a loss for the first quarter of the year, after net profit all but disappeared in 2008 in the face of the global economic slowdown.

Chalco, the world\’s largest aluminium company firm by market value, said net profits dropped to 9.2 million yuan (1.3 million dollars), down from 10.75 billion yuan the previous year.

"Aluminium product prices slumped while fuel costs rose. Our group faced unprecedented difficulties and challenges," company president Luo Jianchuan told a news conference.

Luo said the company had already shut down 40 percent of alumina production and 24 percent of aluminium capacity while it ran down its high-cost raw material inventory.

He said it could restart some of that production in the second half once demand recovered. The company said it faced "an exceptionally challenging business landscape" ahead.

Chalco\’s parent company Chinalco is awaiting Australian government approval for a 19.5-billion-dollar offer to double its stake in mining giant Rio Tinto to 18 percent.

Australia\’s competition watchdog said last week it would not block Chinalco\’s investment in Rio Tinto. But the Australian government is still examining it under foreign investment review laws.

Luo said the company did not expect the Rio Tinto deal to be affected by Australia\’s surprise rejection last week of a bid by state-owned Chinese firm Minmetals bid to buy Australian miner OZ Minerals.

"There has been little impact so far," Luo told reporters after the briefing. "Our (government review) procedure is under control and running well."

Advertisement. Scroll to continue reading.

Chalco also said its chairman, Xiao Yaqing, had resigned from this post after being named deputy secretary general of China\’s State Council, or cabinet, last week.
Xiao said he would step down as chief executive and executive director after the company\’s annual general meeting on May 26.

Xiao, who was also president of Chinalco, was succeeded in that role by Xiong Weiping in February. Xiong has been nominated as a candidate for the executive-director position being vacated by Xiao, Chalco said.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...