Alucam’s Aluminium export sinks to 49,300 tonnes in 2020 from 80,000 tonnes in 2017

According to the report published by Bank of Central African States (BEAC), it has been stated that in 2020 Aluminium du Cameroun (ALUCAM) has exported 49,300 tonnes of aluminium. This export volume is recorded as the second-lowest by the aluminium company in a decade, as the bottom lowest was in the 2012 financial year when the export was marginally over 30,000 tonnes.

The Central Bank data also reveals that the export trend of Alucam has remained downward in the past 10 years, aside from the 2015 and 2017 financial years when the company exported over 80,000 tonnes of aluminium. Its yearly aluminium exports plunged to 49,300 tons in 2020 from 80,000 tonnes in 2017.

The drastic fall is due to the unfavourable situation Alucam drove itself into post the divestment of its strategic partner, Rio Tinto in 2014. However, global giant Rio Tinto's divestment did not have a prompt impact on aluminium exports as more than 60,000 tonnes in 2016 and over 80,000 tonnes in 2015 and 2017 were accounted, but it had an extremely sluggish effect on the company's financial results. In reality, Alucam reported a net loss of CFA franc 10 billion in 2015.

Followed by a dynamic 2017 fiscal year the decline in exports initiated in 2018. Especially in January 2018, a sudden power disruption weakened Alucam’s production activities and gradually the company started recording downfall in its raw aluminium exports.

As per the data published by BEAC, the exports gradually shrunk from about 62,000 tonnes in 2018, to 52,000 tonnes in 2019 and only 49,300 tonnes in 2020. Connected with the dip in the price of aluminium in international markets, this decline in exports significantly impacted on the revenue generation of the company, while as a proof, the Alucam is now struggling to pay its electricity bills.

Alucam rolled-out a merger-absorption process with Socatral in June 2020 to get an additional operating margin. Socatral is a subsidiary company of Alucam which is specialized in the production of aluminium sheets and whose financial health is much better.