Platts reported Chinalco and Alcoa said jointly Thursday that the two companies intend to explore opportunities to expand their commercial relationship by identifying strategic ventures that will benefit from the companies' complementary strengths in bauxite, alumina, aluminum and fabricated products.

Mr Xiao Yaqing president of Chinalco said "Alcoa is a respected leader in our industry and a valuable friend. We intend to grow our friendship and find ways to complement each other's business on a global basis. He said that Alcoa is the founder of the modern aluminum industry, and Chinalco is one of the fastest-growing companies in the industry. As partners we will have many opportunities to prosper and revitalize the market."

Mr Xiao highlighted his confidence that an expanded commercial relationship between Alcoa and Chinalco will have significant benefits for the two companies.

Mr Klaus Kleinfeld CEO & president of Alcoa highlighted some of those opportunities for a strategic relationship in a statement that "As governments stimulate their economies during the downturn, particularly infrastructure stimulus programs in China and the United States, the demand for high quality, high performing aluminum technologies will grow dramatically. And when the global economy recovers, the pent-up consumer and industrial demand will create a broad array of opportunities in both developed and developing regions for Chinalco and Alcoa."

Mr Kleinfeld stressing the advantages of aluminum to address the current mega trends of population growth, urbanization and climate change said that "Because aluminum is a very strong, but lightweight, material that is fully recyclable it is increasingly vital in the construction industry's shift towards green buildings in the modern urban environment and it satisfies the quest by the transportation industry for lightweight, fuel efficient vehicles. We estimate global aluminum demand will increase 6% CAGR over the next decade, with the highest growth in Asia."

The cooperation between Chinalco and Alcoa began in 2001 when Chinalco completed the initial public offering of one of its subsidiaries, Chalco in Hong Kong and New York. They strengthened relationship in 2008 with the formation of Shining Prospect.

(Sourced from Platts)