Brazil’s Alloys, Norsk Hydro’s Albras commit to invest in aluminium in future

Brazilian aluminium producer Alloys Representações Comerciais, Norsk Hydro subsidiary Albras and Pará state government have signed a commitment to future investments in the local aluminium production chain, Metal Bulletin understands.

Alloys intends to build a billet operation in the state, as well as an extruded products plant and an aluminium recycling facility, and Albras will be its primary aluminium supplier, according to information published by state official news agency Agência Pará.

The project will be developed over the next three years.

Other investments will focus on the production of aluminium for steel de-oxidation, secondary alloys and aluminium powder from scrap, according to the news agency.

Investments in the billets and steel de-oxidation lines are estimated at $100 million.

The government is looking to attract aluminium-related companies to Pará in order to promote the manufacture of downstream products in the region.

Alongside Albras, Norsk Hydro’s Alunorte – one of the biggest alumina producers in the world – is located in Pará, as is bauxite producer MRN.

Votorantim Metais is also investing in the state, with its bauxite and alumina refinery project Alumina Rondon set to begin operating in 2017.

“This is a very strategic deal, especially for Alloys”, a local aluminium executive told Metal Bulletin.