Corus Aluminium Extrusions, Vogt, Germany, will invest more than $19 million in a joint venture with Tianjin Non Ferrous Metal Group to design, produce and sell large extruded aluminum sections in China.

Executives said the joint venture would be based in Tianjin, southeast of Beijing, where the municipality owns the nonferrous metal group. It will make products aimed at transport, mechanical and electrical engineering industries.

Corus Aluminium Extrusions, a unit of Corus Group Plc, initially will invest 80 million renminbi ($9.6 million) for a 61-percent share in the venture, while Tianjin Non Ferrous will provide a 55-meganewton extrusion press for a 39-percent stake. An additional 80 million renminbi will be invested during the next two years to upgrade the press and provide new finishing equipment, executives said.

Tianjin Non Ferrous currently produces 6,000 tonnes of aluminum profiles a year; the joint venture has targeted a production growth to 8,000 tonnes of extrusions per year. "We consider China a strategic and promising market and have therefore built up an extensive sales network in China over the past few years," said Werner Graf, managing director of Corus Aluminium Extrusions.
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He said a government policy of investing in infrastructure and residential housing, along with railway and highway development, was expected to provide opportunities.