Aluminium Corporation of China (Chalco), the nation's biggest alumina and aluminium producer, plans to quadruple its total assets, annual sales and profits by 2015 over the levels it produce in 2000.

The company says the increase in its total assets, annual sales and profits will jump to around 145 billion yuan (US$17.5 billion), 80 billion yuan (US$9.7 billion) and 7 billion yuan (US$845.4 billion) respectively by 2015, said Luo Tao, vice-president of Chalco.

"We will carry out a swift, low-cost and flexible development strategy to fulfil these targets and become an internationally competitive multinational firm,'' Luo said.

Chalco, which went public in Hong Kong and New York at the end of 2001, has set as a target reporting 23.7 billion yuan (US$2.9 billion) in sales and 1.82 billion yuan (US$219.8 million) in profits this year.

The company plans to invest 5.5 billion yuan (US$664.3 million) within the next two to three years to enhance production of alumina, which is in short supply on the domestic market, Luo said.

"We aim to increase our annual alumina output to more than 7 million tons in 2005 from 5.41 million tons last year,'' he said.

Luo predicted that China will have to import more than 7 million tons of alumina, or half of total domestic demand for the material, in 2005.

The nation's alumina imports will reach 5.3 million tons this year.

Chalco will expand its alumina imports and exports to reinforce its co-operation with foreign partners, Luo said.

The company operates a 50-50 alumina joint venture in Pingguo, Southwest China's Guangxi Zhuang Autonomous Region, with Alcoa of the United States, the world's largest aluminium maker.

Alcoa also bought Chalco's stake -- equal to 8 per cent of the Chinese company's initial public offering -- in Hong Kong and New York in 2001.

Chalco has also formed co-operative agreements with aluminium companies from Canada, France and Russia.

"We will establish our competitive advantages in exploring overseas aluminium resources,'' Luo said.

China encourages domestic companies to speed up aluminium exploration overseas to meet the fast-growing domestic demands.

The nation's total aluminium consumption will reach 170 million tons within the next two decades, according to China Nonferrous Metal Industry Association.

Chinese companies now have more than 10 planned projects for aluminium exploration in foreign countries, such as Australia, Viet Nam, India, Brazil and Jamaica, the association said.

"We will actively strive for favourable government policies concerning technical upgrades, power supplies, taxation, asset structure optimization and imports and exports in the name of our group company to improve our operational environment,'' Luo said.

The group, Aluminium Group Corp of China, was created this April with the Chalco at its core.

The group has 90 member companies across China.

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