A pair of sources alleging knowledge of the matter told Reuters on Monday that China Zhongwang Group is drawing down its sales in Europe due to the ongoing anti-dumping investigations and the pandemic-affected market.
“We do not know if we are closing in Frankfurt yet, but we are going through a restructuring with some people leaving,” one anonymous Zhongwang source relayed to the news agency. Zhongwang’s European headquarters is in Frankfurt am Main, Germany.
“We do not know how much business will be done from China,” the source admitted.
Speaking officially, Zhongwang said the Germany office was still operating but “has scaled down due to the pandemic.” However, it would continue to adapt its business strategy to the issues presented by COVID-19 and any other unique market conditions. Zhongwang announced this spring its intention to spin off its extrusions business by means of a listing on Shanghai’s stock exchange.
Meanwhile, former Zhongwang account manager in Germany Cui Ming said he had recently been laid off from the firm, citing novel coronavirus’s effect upon the economy, Europe’s two anti-dumping investigations, and restrictions on large Chinese firms in general as reasons for the move.
Through the first six months of 2020 Zhongwang sold US$19.2 million in aluminium product in Europe, which is less than half the total it sold in the first half of last year. Per a regulatory filing last month, the company’s sales on the continent accounted for only 1.5 percent of the total.