Mergers Acquisitions  
AEC Says Zhongwang’s Purchase of  
Aleris Raises Very Serious Concerns  
major Chinese-owned alumi- and another subsidiary he oversees— tions that it evaded U.S. import tariffs  
num company is making a big China Zhongwang Holdings Ltd.—are on aluminum extrusions.  
entrance into the U.S. Zhong- entangled in a dispute regarding U.S.  
wang USA, a subsidiary of Zhongwang import duties.  
International Group, is purchasing  
Allegations were made by the U.S.  
Aluminum Extruders Council (AEC)  
“This acquisition is an international following a detailed report released  
Cleveland-based aluminum company expansion to establish a complemen- by short-seller Dupre Analytics. The  
Aleris for $2.33 billion. The transac- tary business foothold, as I strongly report accuses Liu of inflating Zhong-  
tion is set to close in the first quarter believe in the potential and prospects wang’s sales over the past four years. It  
of 2017. Aleris supplies aluminum to of Aleris and the aluminum industry as claims Zhongwang shipped semi-fin-  
the building and construction indus- a whole,” Liu said in a statement.  
ished aluminum products from China  
tries, as well as the automotive and Liu is the founder of China Zhong- to companies that Liu and people close  
aerospace markets. The company will wang,the largest aluminum extrusions to him control overseas. Those mate-  
retain its name,management team and company in Asia and the second largest rials allegedly were reprocessed back  
current operations.  
The deal was made as Zhongwang under investigation by the U.S.Depart-  
in the world.That company is currently into aluminum billet and sold again.  
“The announcement that Zhongwang  
USA majority owner Liu Zhongtian ment of Commerce (DOC) for allega- and [Lui] intend to purchase Aleris  
raises very serious concerns for the en-  
tire industry,” says AEC president Jeff  
Henderson.“Zhongwang is a state-sup-  
ported enterprise and has received large  
PGT Creates CGI Commercial,  
Acquires US Impact Systems  
benefits and financing from the govern-  
ment of China. Zhongwang also has a  
long history of circumventing and evad-  
ing duties in trade cases by shipping  
over a billion pounds of‘fake’extrusions  
to Mexico and Vietnam.”  
He claims Zhongwang “has refused  
to respond to every questionnaire the  
Department of Commerce has issued;  
it remains to be seen whether Zhong-  
wang and its affiliates will respond to  
the Committee on Foreign Investment  
Zhongwang has denied the allega-  
tions, and Sean Stack, president and  
CEO of Aleris, told Reuters that the  
Chinese company assured Aleris it  
was cooperating with the Commerce  
Department to resolve the case. He  
stressed that the two were separate  
companies despite their link to Liu.  
“This helps them move beyond that  
with very significant investment and  
exposure to the U.S. market,” Stack  
said. n  
enice, Fla.-based PGT Inc., a manufacturer and supplier of residential  
impact-resistant doors and windows, has stepped into the commercial  
sector. The company announced the development of CGI Commercial  
upon acquiring Miami-based storefront fabricator US Impact Systems (USI).  
CGI Commercial will operate out of Miami as a subsidiary of CGI Windows and  
Doors, which it had acquired in 2014. The transaction closed August 31 and  
is valued at approximately $2 million.  
As a market leader, we continuously seek out new opportunities to grow our  
market reach and better serve our customers. The formation of CGI Commer-  
cial and the acquisition of US Impact Systems will allow us to do exactly that,”  
says Jeff Jackson, PGT president and CEO.  
USI has done a great job of serving the PGT customers for almost four  
years while fabricating our existing PGT Storefront commercial products,” says  
Brad West, PGT CFO. “As we position ourselves for growth in the commercial  
market, this acquisition is a way to further develop our in-house commercial  
capabilities and control costs in the future.”  
Given our long history with PGT, its employees and products, this is a natu-  
ral fit,” adds USI vice president and general manager Carlos Martinez.  
Steve Dawson, vice president and general manager of CGI, adds, “The US  
Impact team is made up of a strong leadership team and professional, high-  
ly-trained fabricators.”  
USGlass, Metal & Glazing | October 2016