Reuters
UPDATE 2-Argentine Aluar says to miss 2011 output target
Edited by : AL CIRCLE
2 min read
Argentina's biggest aluminum producer, Aluar (ALU.BA), will not meet its expected output of 475,000 tonnes this year as recent heavy rains flooded its smelter, the company's chief executive said on Wednesday.
Aluar's primary aluminum production plant in the southern city of Puerto Madryn, will be fully operational in 90 days, Chief Executive Javier Madanes told Reuters.
"We're no longer on track to produce 475,000 tonnes (this year). This will, without a doubt result in a loss of production," Madanes said.
Electrical cabinets that flooded after torrential rains on Sunday night affected power reception and generation at the smelter.
"I'm upset about this but it's not catastrophic ... it's nature, no one was harmed and it will be solved in the short term," he said, adding that Aluar aims to have the plant normalized in 90 days.
Madanes said the flooding might have a minor impact on the company's results this year.
"With this situation that we're going through, we're going to have to do our math," Madanes said, adding the aluminum sector is having a rougher time in 2011 than last year due to the worsening global economy.
"We're resisting several onslaughts: a European economy in crisis, a cooler economy in the United States. Fortunately Asia and emerging markets maintain a positive activity level, but the world economic outlook is troubling.
"Prices are poor right now," he said. "They dropped to $2,100 from $2,600 in just four months."
The company, which exports about 75 percent of its total output, will continue with plans to invest in Brazil, Madanes said.
Aluar, 77-percent controlled by the Madanes family, is one of several companies in which the state pension administrator, Anses, has a stake after the government took over the private pension system in 2008.
The government holds a 10 percent stake in the company.
Aluar's primary aluminum production plant in the southern city of Puerto Madryn, will be fully operational in 90 days, Chief Executive Javier Madanes told Reuters.
"We're no longer on track to produce 475,000 tonnes (this year). This will, without a doubt result in a loss of production," Madanes said.
Electrical cabinets that flooded after torrential rains on Sunday night affected power reception and generation at the smelter.
"I'm upset about this but it's not catastrophic ... it's nature, no one was harmed and it will be solved in the short term," he said, adding that Aluar aims to have the plant normalized in 90 days.
Madanes said the flooding might have a minor impact on the company's results this year.
"With this situation that we're going through, we're going to have to do our math," Madanes said, adding the aluminum sector is having a rougher time in 2011 than last year due to the worsening global economy.
"We're resisting several onslaughts: a European economy in crisis, a cooler economy in the United States. Fortunately Asia and emerging markets maintain a positive activity level, but the world economic outlook is troubling.
"Prices are poor right now," he said. "They dropped to $2,100 from $2,600 in just four months."
The company, which exports about 75 percent of its total output, will continue with plans to invest in Brazil, Madanes said.
Aluar, 77-percent controlled by the Madanes family, is one of several companies in which the state pension administrator, Anses, has a stake after the government took over the private pension system in 2008.
The government holds a 10 percent stake in the company.
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