Alcoa Inc, the world's largest aluminum company, will expand further into China through the formation of a US$95 million joint venture with Shanxi Yuncheng Engraving Group.

Alcoa will hold a 70 percent stake in the new company, which will make aluminum brazing sheet, while Shanxi Yuncheng will hold the remaining 30 percent.

The plant, based in Kunshan near Shanghai, will supply up to 50,000 metric tons of aluminum brazing sheet per year.

The brazing sheet will be mostly used to make heat exchangers for Asia's automotive market.

The new facility will be Alcoa's third flat-rolled plant in China.

The company has a venture with China International Trust and Investment Corp in the northern province of Hebei, while it also took full ownership of Alcoa (Shanghai) aluminum Products Ltd last year. Alcoa also owns eight pct in China Aluminum Co.

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