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
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
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-
USGlass, Metal & Glazing | October 2016