Africa’s one of the largest aluminium exporters, Hulamin confirmed that its extrusion plant, in Olifantsfontein, Midrand has been acquired by integrated South African metals company Alfeco Group.
The recently acquired extrusion assets, which are now part of Alfeco’s new aluminium division, with a capacity of 20,000 tonnes per year, have been renamed as Veer Aluminium.
The aluminium extrusion division acquisition highlights further growth and commodity diversification to include in its ferrous and nonferrous metals portfolio.
Presently Veer is re-commissioning the operation and is also embarking on a significant expansion project.
As South Africa currently recycles very little of its aluminium scrap, so the expanded plant will strategically incorporate a fully integrated model that will be based on the recycling of aluminium scrap
Veer foresees that South Africa will experience a sharp growth in recycled aluminium primarily owing to competitive cost economics, wide-ranging applications, significant environmental benefits and lower capital intensity.
The strategic vision of the group is to develop, grow and expand integrated metals beneficiation, with the acquisition aligned to this. A vital objective being pursued through the expansion is to create a secondary aluminium ecosystem and hub.
Sachin Ahuja, Group CEO, said: “The first phase of re-establishing the extrusion operation is well underway and is expected to come on line at the end of the second quarter.”
“This is to be followed by the second phase which involves the expansion of the plant to encompass scrap processing, melting, casting and rolling. This will require significant capital being injected into Veer Aluminium,” he adds.
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