PITTSBURGH (AP)--Alcoa Inc. (AA), the world's largest aluminum producer, said Monday that it has formed a $95 million joint venture with Chinese engraving company Shanxi Yuncheng Engraving Group.
The venture will make aluminum brazing sheet used by auto makers at a site near Shanghai.
Alcoa will be the managing partner in the venture and hold a 70% stake. The remaining 30% will be held by Shanxi Yuncheng, China's top manufacturer of concave printing and embossing version rollers. It has more than 30 factories in China and plants in 10 other countries.
The investment will enable Alcoa to supply up to 50,000 metric tons of aluminum brazing sheet primarily to auto makers in Asia, the company said. It will be produced in Kunshan City, near Shanghai.
The venture establishes Alcoa's third flat-rolled production facility in China. In 2005, Alcoa formed a joint venture to produce aluminum rolled products at Alcoa Bohai Aluminum Industries Co. in Qinghuangdao, China. It also took full ownership of Alcoa Aluminum Products Ltd. in Shanghai from a joint-venture partner.
"This venture deepens our investment in expanding our flat-rolled products capabilities globally and increases our manufacturing flexibility and productivity," Alcoa's Chief Executive Alain Belda said in a statement.
Alcoa shares recently rose 46 cents, or 1.4%, to $32.96.