China Zhongwang reduces European operation due to EU anti-dumping investigations and COVID-19 pandemic

Chinese aluminium products company China Zhongwang Holdings Limited has curtailed its European sales operation as a result of the European Union’s anti-dumping investigations and coronavirus-induced economic downturn, said two sources familiar with the matter.

Zhongwang, a world leading manufacturer of aluminium extrusions widely used in the transport, construction, and electronics industries, has its European office in Frankfurt.

An unnamed source at the company told Reuters on Monday, August 31, "We do not know if we are closing in Frankfurt yet, but we are going through a restructuring with some people leaving."

The company in March had unveiled its plans to outgrow its aluminium extrusions business via a listing in Shanghai. But a few months later, it told Reuters that its Europe office would be in operation but business activities would be lesser due to the pandemic.

Going ahead, Zhongwang will continue to review and adjust its business strategy depending on the pandemic and market situation, it added.

Cui Ming, who worked with Zhongwang as a key account manager in Germany, wrote in a LinkedIn post that besides the COVID-19 pandemic, European Union’s two anti-dumping investigations and restrictions on the activities of big Chinese companies were also reasons behind the decision.

The European Commission in February opened an investigation into whether China was dumping aluminium extrusions in the European Union and then this month launched a second investigation into flat-rolled aluminium products from China.

Zhongwang's sales in Germany totalled RMB 132 million in the first six months of the year, down more than half from a year earlier, accounting for only 1.5 per cent of its total sales over the period.

source https://www.alcircle.com/news/china-zhongwang-reduces-european-operation-due-to-eu-anti-dumping-investigations-and-covid-19-pandemic-57932