Alconix Takes 25% Shares in China Cu Tube Maker

Japanese nonferrous metal trader, Alconix announced on Tuesday the company acquires 25% ordinary shares in Chinese air conditioners copper tube maker, Shanghai Longyang Precise Compound Copper Tube. Shanghai Longyang Precise Compound Copper Tube will become Alconix’s equity method affiliate. Payment for the share acquisition will total 1.19 billion yen. Alconix reinforces copper tube supply in China where the demand is growing from Japanese electric appliance and air conditioner makers.

Alconix succeeds shares of, Shanghai Longyang Precise Compound Copper Tube from Japanese major maker of air conditioner coated copper tube Chuo Bussan, in early March 2012.

Shanghai Longyang Precise Compound Copper Tube is controlled by Henan Golden Dragon Precise Copper Tube, the world largest copper tube maker, with 51% controlling shares. The productive site organizes an integrated line from melting & casting, surface cutting, inner grooving to annealing on the land of 46,000 square meters. The output capacity is more than 50,000 tonnes per year.

Shanghai Longyang Precise Compound Copper Tube posted annual net sales at 2.524 billion yuan (approximately 30.7 billion yen) in CY2010 with recurring profit at 43 million yuan. The firm also exports common grade products to Japan, such as plain copper tube or straight copper tube.