Olympus invests $100m in Chinese aluminium company

Olympus has made its fourth Chinese investment with a growth capital infusion in Zhongwang International, the world's third largest aluminium profile company.

Olympus Capital Holdings Asia, as Asia-focused mid-market private equity firm, has invested $100 million (€68 million) in Zhongwang International Group, parent company of Liaoning Zhongwang Group, a Chinese manufacturer of aluminium extrusion profiles.

The size of the stake acquired was not disclosed.

The company, which has annual sales of more than RMB 10 billion ($1.46 billion; €989 million), is the largest supplier of light transportation material in China. Its products are used in the railway, shipping and aviation industries.

Olympus will appoint a director to Zhongwang's holding company following the completion of the transaction.

Lu Changqing, executive director and vice president of Zhongwang, said that the investment will be used to sustain the company’s growth in production, to support its expansion into new markets and for improvement in corporate governance.

The investment was made out of Olympus Capital Asia III, a $750 million fund. This is the fund's fifth investment and about 25 percent of its capital has been deployed so far.

Olympus’ previous Chinese investments include Sichuan Emeishan Special Cement, a joint venture established with listed cement producer Sichuan Golden Summit; processed vegetable exporter China Minzhong; and Tamarisk, a specialty vehicle holding carbon credits from the reduction of emissions at certain chemical plants.

The firm focuses on investments in the manufacturing, agribusiness, business services, environmental services and financial services sectors. It has invested approximately $1.3 billion in about 30 companies around Asia.

Established in 1997, Olympus has offices in Hong Kong, New York, Seoul, Shanghai, Tokyo and Delhi.