The Aluminum Corporation of China Ltd. (Chalco) signed an agreement in Beijing on Friday with Sweden's extruded aluminum profile maker, Sapa Group, to create a 50-50 joint venture in southwest China to produce aluminum parts for high-end rail transit projects.

Under the agreement, the two companies will invest an initial 630 million yuan (96.33 million U.S. dollars) in the joint venture in Chongqing Municipality.

The joint venture is set to start operations in 2013 and produce 20,000 tonnes of aluminum products annually.

Share prices of Chalco, the listed arm of Aluminum Corporation of China (Chinalco), climbed 1.38 percent to 11.79 yuan on Friday on the Shanghai bourse.