The firm recently represented Aluminum Corporation of China Limited (“Chalco”) in connection with its establishment of a Sino-foreign equity joint venture (the “JV”) with Sapa AB (“Sapa”) and the related transitional arrangements between the JV and Southwest Aluminum (Group) Co., Ltd., a Chalco affiliate.

 

The JV, Sapa Chalco Aluminum Products (Chongqing) Co., Ltd., will engage in the business of designing, manufacturing and marketing of structural aluminum extrusions and modules to serve the fast-growing high-speed railway market in China. The JV has a total investment amount of RMB630 million (approximately US$96 million) and a registered capital of RMB280 million (approximately US$43 million).

Headquartered in Beijing, China, Chalco is the largest aluminum producer in China and the third-largest in the world. Sapa is based in Stockholm, Sweden and is the world’s largest aluminum extrusion company. Each of Chalco and Sapa holds a 50% equity interest in the JV. The JV is Chalco’s first-ever joint venture project in aluminum fabrication.

The Simpson Thacher team included Shaolin Luo, Liang Wang and Yang Wang.