China Zhongwang Acquires ALUnna - First Overseas Acquisition to Strengthen Foothold Globally
 
Sep 13, 2017
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Hong Kong, Beijing China, Unna Germany, 13 September 2017 - China Zhongwang Holdings Limited ("China Zhongwang" or the "Company", together with its subsidiaries the "Group", stock code: 01333) announced the first international acquisition to strengthen its foothold in the international aviation sector. Through a wholly-owned subsidiary, China Zhongwang has acquired a controlling stake in Aluminiumwerk Unna AG ("Alunna"), a well-established aluminium extrusion maker based in Unna, Germany that provides high-end extrusion products, mainly seamless tubes, to world-leading aircraft manufacturers.

"We greet ALUnna and would like to welcome ALUnna to our China Zhongwang family," Mr. Lu Changqing, President and Executive Director of China Zhongwang, said. "The acquisition marks a milestone in our international expansion and a major step in complementing the Company's business. I am confident that this transaction will generate synergies between China Zhongwang and ALUnna, as both companies share the belief in delivering excellent solution to the customers through unremitting innovation and tireless commitment, while focusing on clean and sustainable development. The transaction would also substantially enhance China Zhongwang's production capability in seamless extruded aluminium tubes for further optimising our product mix. Furthermore, with ALUnna's product quality credentials and experience in customer development, the acquisition will expedite the Group's business expansion into, among others, aviation and automobile industries, therefore enhancing the Group's overall competitiveness. We look forward to supporting ALUnna in accelerating its expansion in the long run with extended resources and financial flexibility."

ALUnna manufacturers a myriad of high value-added aluminium alloy extrusion products including seamless and porthole extruded aluminium tubes, which are extensively applied in various end-use sectors from aviation, mechanical engineering, automobile, to electric power industry, serving a number of world-renowned clients including Airbus, Boeing, Bombardier, Mercedes-Benz and BMW. Over the past century since its establishment in 1914, ALUnna has accumulated industry leading R&D strengths and developed an integrated production line beginning with the melting, alloying and casting of aluminium billet, through extrusion and drawing, to final heat treatment and cutting of the semi-finished products. It has established itself as one of the industry-leading manufacturers in Europe and around the world.

Commenting on this transaction, Thomas Wiese, CEO of ALUnna, said: "We are especially pleased about this acquisition by China Zhongwang, a reliable strategic shareholder. Being the world's second largest aluminium extruder, China Zhongwang will provide us additional resources to expand our operations and propel long-term growth, to reinforce our international reputation and recognition, and to strengthen our position as a world-leading supplier. We look forward to working closely with China Zhongwang to ensure a seamless and smooth transition. We expect the transaction to create further career development opportunities for the existing employees and create new jobs. ALUnna together with China Zhongwang have the goal of continuing to generate lasting values for customers, partners, employees and shareholders worldwide."

China Zhongwang has been strategically unfolding its global foothold. It has set up sales offices in Germany and Japan to support overseas sales business. Through the acquisition of ALUnna, the market leader in Germany and within Europe, China Zhongwang will further expand the European market.

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About Aluminumwerk Unna AG
ALUnna was founded in 1914 in Unna Germany and counts as a European and Worldwide leading aluminium manufacturer. Alongside aluminium tubes (its core business), aluminium profiles, bars and billets count as part of the high quality product portfolio. The highly skilled employees and the modern manufacturing facilities enable ALUnna to sell its products in Europe, North America as well as many other places worldwide. The tailored products beneficial to customers find use in the aerospace, automobile, mechanical engineering and energy branches. Together with its employees, customers, suppliers and shareholders, ALUnna applies itself in creating sustainable values for the society.

For further information on the ALUnna, please visithttps://www.ALUnnatubes.com/home.html.

About China Zhongwang Holdings Limited
China Zhongwang is the second largest industrial aluminium extrusion products developer and manufacturer in the world and the largest in Asia. It has, over the years, been focusing on the light-weight development of transportation, machinery and equipment and electric power engineering sectors through the provision of quality industrial aluminium extrusion products. It now has over 90 internationally advanced aluminium extrusion production lines, including 21 production lines of large-scale aluminium extrusion presses of 75MN or above. The Group's unique core competitiveness in the industry lies in its comprehensive strength of four-in-one model, i.e. the integration of smelting and casting, die design, advanced equipment and R&D capability all under one roof.

In addition, to further leverage its existing strengths in the industry, the Group is developing the high value-added aluminium flat rolling project. The planned annual production capacity of the two production lines under construction reaches 1.8 million tonnes. Upon completion, the project will become the world's largest top-notch aluminium flat rolling production base with state-of-the-art equipment. This new business venture will not only enable the Group to further capitalize on its leading edge in aluminium alloy smelting and casting and product R&D, but also achieve synergistic development with its existing aluminium extrusion and deep processing businesses by taking full advantage of shared resources.

For further information on the Group, please visitwww.zhongwang.com.

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