The increasing demand and use of aluminium across the globe in various industries like construction, packaging, and transportation shows that the incorporation of this silvery-white is widespread and evolving daily. The downstream segment also witnessed significant investments and enthusiastic purchases worldwide this year. New investments or projects not only open the doors towards improved business opportunities but also creates a scope for employment and an enhanced working environment. The downstream aluminium sector throughout 2022 has witnessed a limited but significant number of investments.
Some of the top investments under the aluminium downstream segment in 2022 are:
Jindal Aluminium: One of the largest aluminium extrusion companies in India, acquired an acquisition of INR 100 of the assets of Indo Alusys Industries Limited (IAIL). Along with the assets of IAIL, its manufacturing unit in Bhiwadi, Rajasthan's industrial sector, was also purchased. The site, which is around 70 kilometres from the national capital, provides Jindal Aluminium with strategic access to the northern market and a potential capacity of 14,000 metric tonnes per annum extrusions. This acquisition was expected to increase Jindal's aluminium extrusion capacity from 125,000 to 139,000 tonnes.
Vedanta Aluminium: Another significant investment was that of Vedanta’s mega aluminium park. The Odisha government already approved this investment during the initial months of 2022. The decision to give the budget of INR 428.95 crore was approved by the state cabinet members chaired by Odisha Chief Minister Naveen Patnaik. On December 1, the foundation stone for the mega aluminium park was finally laid at the Make in Odisha, 2022 Conclave, by pressing the button in the presence of the company’s chairman Anil Agarwal.
Norsk Hydro: Hydro added another aluminium extrusion press at its manufacturing facility in Rackwitz. This new addition worth EUR 11 million is expected to create 40 new job opportunities and increase the extrusion capacity of the plant by 12,000 tonnes annually. It is one of four facilities in the company's DACH division that caters to extrusion clients in Austria, Germany, and Switzerland. One facility is in Austria, while three are in Germany.
AzerAluminium: Achenbach Buschhütten of Germany and Azeraluminium LLC, a division of Azerbaijan Industrial Corporation OJSC, had agreed to form a joint venture to produce aluminium products in Ganja. The deal included the fabrication of rolling aluminium products, with a first-phase investment of $132 million and a production capacity of 105,000 tonnes per year.
Vulcan Steel: Vulcan Steel had signed a conditional sale and purchase agreement to acquire Ullrich Aluminium for NZ$165 million (A$148.63 million). The selling price consisted of net tangible assets of NZ$131 million and net debt of NZ$34 million. The primary purpose of this agreement was to switch to a more sustainable option like aluminium, which also helps reduce carbon emissions.
Rheinmetall: Rheinmetall and KPSNC had bagged a valuable order worth around €42 million for chassis parts destined for an electric SUV by a new player in the mobility sector. The company is one of the top manufacturers of lightweight aluminium, with production sites both in Germany and China, and is hoping to start the production series by 2024. A total of eight years are allotted for the project. The parts will be made at the Guangde facility in China's Anhui province by the "local for local" tenet.
Gränges: To facilitate the manufacture of battery cathode foil, the aluminium technology business Gränges, which has been leading the development of lighter, more intelligent, and more sustainable aluminium products and solutions, had reportedly expanded its production plant in Newport, Arkansas. Such foil is an essential element required for producing lithium-ion batteries, which is a necessary step in the shift to electric cars. This foil will be produced by Gränges for the first time in America. Equipment for finishing and cleanrooms is included in the investment, and commercial deliveries are anticipated to start in 2024. Beginning in 2024, commercial deliveries of finishing and cleanroom equipment are scheduled.
Novelis: One of the leading producers of aluminium flat-rolled products and the world’s largest recycler, conducted the ground-breaking ceremony for its $2.5 billion new aluminium rolling and recycling facility in Bay Minette, Alabama. The project is expected to create 1000 new job opportunities. The plant will include a recycling centre for beverage cans, ramping up the company’s recycling capacity by 15 billion cans per year when fully operational.
Steel Dynamics: In November, Gov. Tate Reeves and Mississippi Legislature finalised the much-awaited $2.5 billion aluminium mill project by Steel Dynamics. The project is anticipated to generate over 1,000 employment opportunities with an average yearly income of $93,000. Considered one of Mississippi's most significant economic development pacts, the project will supply the automotive, industrial, and industrial packaging sectors. The project is a part of Steel Dynamics' expansion of its Columbus, Mississippi, campus, which is situated on a Tennessee Valley Authority Mega Site.
Assan Alüminyum: Assan Alüminyum, one of the leading manufacturers of flat-rolled aluminium (FRP) and a subsidiary of Kibar holdings, announced their plans to open a facility in the United States with an investment of $460 million. With this project, they are aiming to grow not only in Europe and the US but also to create their presence in the Asia Pacific Region. According to Ali Kibar, the chairman of Kibar Holding executive board, the projected factory's annual production capacity would be 120,000 tonnes.
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