LME WEEK: Trafigura's Impala in MoU with Citic; delisting some LME locations

Trafigura Beheer BV's Impala Terminals has signed a Memorandum of Understanding with a subsidiary of Citic Securities, China’s largest investment bank, to create a joint venture warehousing, logistics, freight forwarding and terminals business in China.

The move comes as Impala plans to downsize its London Metal Exchange-approved warehousing activities and focus instead on expanding its multi-modal logistics business focused around ports, warehousing and logistics assets. Initially focusing on Shanghai, the MoU will be run by Impala and Citic Global Trade (Shanghai; CGT). It is expected to expand quickly to other parts of China and abroad. The MoU will include Impala's newest metals warehouse in Yangshan, located in the Shanghai Free Trade Zone. It is built to LME standards and has storage for 127,000 tonnes of metals. Three more China-based warehouses will be rolled into the MoU in the near future. According to Nicolas Konialidis, ceo of Impala Terminals, CITIC brings a domestic acceptability, while Impala brings its operational know-how, expertise and standards from its LME business experience. Citic – which mainly focuses on precious metal, base metal, energy, shipment and dry goods - is committing its own tonnage and...

Published

Andrea Hotter

October 21, 2014

20:30 GMT

London