Author: Paul Ploumis20 Feb 2015 Last updated at 07:50:32 GMT
MONTREAL (Scrap Monster): Rio Tinto Alcan has announced huge expansion plans at Canadian smelters once aluminum market recovers from the present lull. According to Alfredo Barrios, CEO, excess smelting capacity does not permit the company to make new investments at this stage. However, the long term fundamentals remain strong that the company may invest big post market recovery.
The prices of the commodity have declined sharply during the past one year. The market conditions remained weak. Despite all the challenges, Rio Tinto Alcan has made significant investments to the tune of $7.5 billion in Canadian smelter operations. The $4.8 billion modernization works at Kitimat smelter is almost over.
Barrios noted that the global aluminum market will continue to remain volatile in the next couple of years. The company plans to implement several measures to boost productivity and cut down costs. Last year, the company had decided to close one-fourth of its global smelting capacities. The total number of employees in the company’s Canadian aluminum operations has reduced from 21,000 to 18,000 in three year’s time.
The aluminum demand from automotive sector is expected to grow rapidly through 2025. The company is committed to make fresh investments in smelters across the globe if aluminum market shows strong recovery. Quebec still continues to be the core region as far as the company’s smelting business is concerned, he added. The construction of the new Alouette smelter and expansion of its AP60 pilot project in Quebec are on the top the company’s priority list.
