Hulamin announces a recycling investment of R300m amid Bayside supply concerns

Hulamin said the turnover of the group was helped by the improved performance from extrusions and depreciation of the rand.

But the group faced potential supply ructions after BHP Billiton began consultations with their employees in its Aluminium SA business in January on halting of aluminium smelting as well as associated services at Bayside aluminium smelter.

Hillside was the largest standard aluminium ingots producer in the southern hemisphere. However, BHP Billiton said it would support the continuous supply to domestic customers, and the cast-house located at Bayside would still operate with supply from the Hillside as the group called it "options for its future".

Hulamin has announced their investment of R300-million t in additional scrap separation, recycling and processing equipment, with their start-up that was planned in mid-2015.

“There’s no doubt that optimum supply from Bayside is good for Hulamin and good for the whole economy, but we can’t sit on our hands and wait for them to decide what to do with their asset. This investment will contribute further to us being self-sufficient in rolling slab up to 200 000 t,” Hulamin CEO Richard Jacob told Engineering News Online on Monday.

After announcing in September 2012 that it would review its Bayside facility, which had been under “significant and ongoing financial pressure”, BHP Billiton initiated a formal consultation with employees of its South Africa-based aluminium business in January over a proposal to cease smelting activities and associated services at Bayside.