On Monday, March 7, Glencore, a multinational commodity trading and mining company has decided to supply alumina to Aluminium Dunkerque, in return for which the former will be selling a portion of its aluminium output to the latter. This decision has been taken in regards to the Russia-Ukraine conflict, which has resulted in shipment disruption of alumina.
Seated in the northern French port of Dunkirk, Aluminium Dunkerque, one of the largest primary aluminium smelters in Europe produces 286,000 tonnes of aluminium per year, with an annual turnover of US$800 million. It also employs over 600 workers.
Aluminium Dunkerque (AD) has also agreed to a multi-year arrangement with London-listed Glencore GLEN.L to sell "a share" of its aluminium in a multi-year agreement compatible with the company’s current customer obligations and focused on value-added goods.
"Commercial terms of the contracts are confidential. All prior arrangements between AD and Glencore have been canceled," said Aluminium Dunkerque on Monday.
"We believe these arrangements will increase the diversity of Aluminium Dunkerque's counterparties at a time of considerable market volatility," added AD.
Following a debt default by a portion of former owner GFG Alliance, private equity company American Industrial Partners (AIP) purchased the Dunkirk smelter last year.
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