(Yicai Global) April 2 -- Jiangsu Asia-Pacific Light Alloy Technology, better known as Apalt, and Japan's Mitsubishi Aluminum have penned a deal to set up a joint venture making aluminum car parts in China.

The pair agreed on March 31 to set up a unit with CNY80 billion (USD11.3 billion) in registered capital in Apalt's home province of Jiangsu, the Chinese partner said in a statement yesterday. The companies are yet to determine how large a stake each will hold and have not defined the business scope of the unit, the statement added, saying they will finalize the details in June this year and finish the registration process in August.

The cooperation will combine Apalt's development skills and experience producing high-performance aluminum extrusion products for the auto sector with Mitsubishi's strengths, Apalt said.

Shares in Wuxi-based Apalt [SHE:002540] were up 2.1 percent at CNY4.34 (61 US cents) as of 2.08 p.m.

Editor: James Boynton