The purchase by Chalco (Aluminium Corp of China) of Liancheng Aluminium from parent Chinalco is expected to proceed at the end of this month.

The purchase is part of Chalco�s restructuring and reorganization as was its purchase of Baotou (Aluminium).

The purchase of Liancheng will lift Chalco's annual production capacity of primary aluminum, including electrolytic aluminum, by about 10.8% from 2.48 million tonnes last year.

The acquisitions of Baotou and Liancheng, will place Chalco in a position to be more involved in downstream aluminium production and not compete head-to-head with its parent in other sectors such as upstream alumina and bauxite mining.