China's top aluminium companies are venturing into the more lucrative parts of the global value chain, on course to seize market share from the likes of Alcoa and Constellium, as they look to buy into foreign firms to boost their technical know-how and expand their reach.
The chief executive of Novelis Inc, the world's largest maker of rolled aluminium products, said last week he expected competition with Chinese producers to be "very fierce" over the next five to 10 years in the high-value-added sectors of aerospace and engineering - which so far have been dominated by European and U.S. manufacturers.
Alcoa is spinning out its precision manufacturing business into a company to be named Arconic, which industry sources said could be another potential target. Arconic expects to grow its automotive sheet revenue around sixfold, to US$1.3 billion in 2018 from US$229 million in 2013. It has already signed US$10 billion (8.22 billion pounds) with customers including Boeing and Airbus.Off White X Max 98
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