Roughly 22,000 tons of high-grade aluminum alloys that were seized by U.S. Customs and Border Protection in 2017 will be sold at auction beginning next month in Riverside, with the proceeds supporting domestic manufacturing, recycling and federal law enforcement missions.
CWS Marketing Group and Amentum will conduct the auction at 11 a.m. Feb. 19 at the Amentum Auction Facility, 6711 River Run Road. The sale will offer two lots totaling nearly 20 million pounds.
A second auction is tentatively scheduled for May, with more than 24 million pounds stored in 625 shipping containers available.
The aluminum is stored at Amentum Consolidated Storage Facility and consists of about 279,000 spot-welded “pallets” made from AL356 and AL6063 alloys, officials said.
The material is suitable for recycling and re-melting in manufacturing throughout numerous industries, including aerospace, construction, automotive and transportation.
The seizure was tied to six corporate entities — two aluminum businesses and four warehousing companies — who authorities say took part in a conspiracy to defraud U.S. investors for falsely inflating revenue for a China-based company and dodging paying $1.8 billion in anti-dumping and other charges between 2011 and 2014. The companies were ordered to pay nearly $2 billion in restitution in 2022.
The fraud scheme involved China Zhongwang Holdings Ltd., Asia’s largest manufacturer of aluminum extrusions, and the company’s former president and chairman, Zhongtian Liu, who orchestrated the smuggling scheme, authorities said.
The aluminum was spot-welded together and disguised as “pallets” and were stored at four warehouses in Southern California.
Previews of the material are available by appointment at the Riverside facility the week prior to the auction. Potential buyers must provide a $100,000 refundable deposit and proof of funds for bidder registration.
Officials said recycling of aluminum saves about 95% of the energy required for “primary production, offering substantial environmental benefit while returning forfeiture proceeds to support federal law enforcement missions and victim assistance.”
More information regarding the auction can be found at CWSMarketing.com.