ALSCON plans to cut down losses, suspends work at aluminum smelter

The Aluminum Smelter Company of Nigeria (ALSCON) said the management is taking steps to cut down their losses while they have suspended the production of aluminum at the smelter.

The managing director of ALSCon, Stanislav Kruglyashov, has given this statement to Business Day on Monday. He said the firm has taken this kind of a decision due to ongoing crisis in the global aluminum industry, further disruption in supply of gas and non-completion of ALSCON’s involvement in the national grid project.

The company will want to optimize their payroll further and this includes the layoff of a part of the currently employed staffs. “ALSCON will provide employees being affected with compensation benefits exceeding the level in accordance with the Nigeria law”, Kruglyashov said in the statement.

ALSCON, a part of the United Company RUSAL has been working in Nigeria for last seven years and has proved itself to be a conscientious investor during this period. RUSAL has actively invested in development of ALSCON and even in social infrastructure of the company’s host council, Ikot Abasi. They have worked on implementing various programmes that were aimed at raising the living standard in the region, including various projects in healthcare and education.

At present, RUSAL is experiencing a bad time in the tough market condition and the board of directors have approved of the production cuts programme executed by the company. This is being done to reduce costs as well as minimisation of loses. Due to this, the company had cut down on the production of aluminium at their less-efficient smelters including the 5 smelters in Russia and ALSCON in Nigeria.