Aluworks, Ghana: Aluminium casting and cold rolling mill seeks $40 million working capital to revamp operations

Aluworks Limited, an aluminium continuous casting and cold rolling mill located at the port city of Tema, Ghana is seeking $40 million to revamp its operations to stand strongly against the dumping of cheap Chinese aluminium products on the Ghanaian market.

The aluminium plant with a capacity of 30,000 tonnes has struggled over the years particularly due to cheap import and low patronage.

Kwasi Okoh, Managing Director, Aluworks Ltd., said: “The dumping of aluminium coils and others had resulted in a progressive loss of their market share over a long period.”

“A specific example is that we produced and sold over 15,800 tonnes of aluminium flat-rolled products in 2006 but only about 3,800 tonnes were produced and sold in 2018, showing a market share loss of 75%.”

He added: “Aluworks was crucial to Ghana’s Bauxite Aluminum Scheme and its demise would jeopardize any serious national plan on aluminium.”

“Today importing is far cheaper than manufacturing as our aluminium businesses are importing. Some of the Indian and Chinese traders are bending Ghana’s law to facilitate their aluminium business.”

 “While the unfair import trade has continued, Aluworks Limited has been sinking but Aluworks serves hundreds of downstream customers and has hundreds of workers, each with dependents,” according to Mr Okoh.

He asked the Social Security and National Insurance Trust (SSNIT) and Qatar based Caitlin to stop the fallout and channel the needed resources to revamp the company.

“We should be rejoicing now after the verdict but where is the money to work and make a profit? SSNIT, our major shareholder is not seeing eye to eye with Caitlin,” he said.

However, the Ghana International Trade Commission ruled in favour of Aluworks, against the dumping of aluminium coils from China.

Aluworks had petitioned the GITC over the unfair trade practices. The Vice-Chairman of the GITC, Prof. Paul Kuruk said the products imported from China have been causing material injury to the Ghanaian industry.