Last week we went the whole week without a single post, but we will make up for it this week with some news from around the China aluminium industry.
And here’s a story that speaks volumes for how things work in China. Xiong Weiping, the President of Chinalco is to depart the company later this month for a new role inside the National Government. We have conflicting information about what that role might be, with one source saying he would move to the National People’s Congress.
But that’s not the interesting part. His replacement is to be Mr Sun Zhao Xue. Mr Sun was a senior manager inside Chinalco some years ago before transferring to China Gold Group.
But that’s still not the interesting bit. China Gold Group is to be merged with Chinalco into a single company. In the absence of a name for this new entity, I have offered “China Shiny Metals Group” as a suggestion.
This is how China works. Nominated as a free market economy by many, when it comes to the players in the market, the Communist Party and its organs decided who and how. Never mind that Chinalco has a listed arm in the form of Chalco, whose shareholders other than the CPC (in the guise of SASAC) have no say in the re-organisation and merger.
It made no sense a few weeks ago when Chalco announced that they were transferring troublesome assets to the parent company. It left Chalco with hardly any profitable business, and deep in debt. Now it appears we are seeing the other shoe fall.
Check the next post for another Chalco announcement.