CITIC Renews Aluminum Procurement Agreement With Parent
CITIC (HKG:0267) terminated its existing aluminum alloy hub and raw materials procurement agreement with parent CITIC Group and signed a new aluminum alloy hub procurement framework agreement through Dec. 31, 2028, according to a Friday Hong Kong bourse filing.The new agreement reflects the addition of four aluminum alloy wheel manufacturers that have become, or are expected to become, connected parties following CITIC Group's acquisitions.It also removes raw materials procurement transactions from the arrangement.Annual transaction caps for aluminum alloy hub purchases were raised to 11 billion yuan for 2026, 12 billion yuan for 2027, and 13 billion yuan for 2028, from 680 million yuan previously.CITIC said the higher caps reflect an expanded supplier base, rising aluminum prices, growing demand for aluminum alloy wheels, particularly from the new energy vehicle sector, and expected growth in shipments from its subsidiary, CITIC Dicastal.
