GFG's aluminium business Alvance eyeing takeovers to triple production

According to a Reuters report, GFG's aluminium business Alvance is eyeing takeovers in order to triple its manufacturing capacity. The chief executive said that the company is aiming to create a vertically-integrated group.

Alvance plans to enhance its capacity to 1 million tonnes annually of primary aluminium in three years from the current level of 332,000 tonnes.

The group is eyeing acquisitions that include green energy to meet its goal of becoming carbon neutral by 2030, CEO Arnaud de Weert told the online CRU World Aluminium conference.

 “We’re looking at whatever’s coming on the table and talking to the people who own assets that would fit our portfolio,” De Weert said.

“And we’re in a little bit of luck because it seems that quite a few primary producers and integrated players are reviewing their portfolios.”

 “We’re not in alumina processing or bauxite mining yet, but our vision is to capture the complete aluminium supply chain.”

Alvance agreed to acquire the Duffel aluminium plant from Novelis last December. The company was awaiting regulatory approval from the Chinese authorities for Duffel, which was expected to be imminent.

Alvance is also planning to sell future production on the London Metal Exchange (LME) to protect against price declines.

“Because typically we’re in the second quartile cost positions, when the LME (price) goes up, we will hedge to protect the downside for the future years.”

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