(Yicai Global) Oct. 26 -- China's leading high-end aluminum processing firm China Zhongwang Holdings Ltd. [HK:1333] has actively stalked overseas acquisition targets.

Following clinching a controlling stake in a German high-end aluminum extrusion aluminum firm in September, it recently acquired an Australian firm.  

Zhongwang completed its acquisition of a controlling stake in Silver Yachts Ltd., a manufacturer of aluminum super yachts in Australia, it announced today in Beijing, The Paper reported. This means that China Zhongwang has directly embarked on downstream manufacturing for the first time.

"The parties will have an important share ratio in the company (after the deal)," said Lu Changqing, president and executive director of China Zhongwang. However, the confidentiality agreement renders discussion of the proportion of shares and the specific amount for the deal inopportune, but Zhongwang will hold the majority, Lu added.

China Zhongwang, founded in 1993, is headquartered in China's northeastern Liaoning province, and is the world's second-largest and Asia's largest industrial aluminum extrusion product manufacturer. The company mainly engages in diversified high-quality industrial aluminum processed product research and development, production and sales, and plies three core businesses, including aluminum extrusion, deep processing and aluminum rolling.When the company listed in Hong Kong in 2009 it was then the largest initial public offering in the world since 2008.

Silver Yachts formed in 2005 and is headquartered in Perth, Western Australia. The company is a leader in the design and manufacture of large, aluminum alloy, aerodynamic design, high performance and low-fuel super yachts. It is also the world's only firm able to design and manufacture over 70-meter long aluminum alloy super yachts.

"The acquisition is a key move taken by China Zhongwang to extend its deep processing business strategy further to the field of navigation, and will be conducive to promoting the company's international business development, Lu said, adding that the concern will choose a location to build a new factory to introduce its super yachts to China.

After the acquisition, the aluminum processing firm is expected to extend its business to downstream areas, while at the same time providing resource advantages to Silver Yachts and sharing its research and development results in the design, production and application of aluminum alloy products with it. The daily operation of Silver Yachts remains unchanged.

"Silver Yachts has made plans to expand our operating teams in Australia and China," said Silver Yachts founder and German environmental protection industrialist Guido Alexander Krass.