GFG Alliance will consolidate all its aluminium assets, which are mainly located in France, into a single entity called Alvance Aluminium Group, executive chairman Sanjeev Gupta said Monday.
The new business is to be headquartered in Paris and will have 1,700 employees.
The move follows the consolidation of the GFG Alliance's steel businesses into a single global entity, Liberty Steel Group, in October last year.
The new aluminium entity will, like Liberty, be committed to becoming carbon-neutral by 2030.
"Alvance will now share this CN30 target, with the aim of setting Alvance on course to become the new standard bearer for sustainable aluminium production, GREENALUMINIUM," the company said in a statement.
A spokesman told S&P Global Platts the target will be reached mainly by replacing carbon-based power with renewables, improving operational efficiency and boosting recycling rates, as "it only takes 5% of the energy to recycle aluminium vs making it from scratch."
The company believes that research into "inert anodes" will also play a key role as they do not corrode and produce greenhouse gases during the smelting process.
Alvance's portfolio will comprise Europe's largest aluminium smelter, Alvance Aluminium Dunkerque; the UK's only remaining aluminium smelter at Fort William, Scotland; Alvance Wheels, France's only manufacturer of aluminium wheels in Chateauroux; and engine cast part producers Alvance Aluminium Technologies Poitou and Alvance Cast Products Poitou.
In total they produce 332,000 mt/year of primary aluminium, the spokesman said.
GFG has also conditionally agreed to acquire Belgium's Duffel aluminium rolling facilities and is participating in an approval process with the European Commission's competition team.
The group already exploits low-carbon power sources. The Fort William smelter is powered by GFG Alliance's hydropower plant located on the slopes of Ben Nevis. In France, the Dunkerque smelter makes use of the existing low-carbon French energy mix derived mainly from nuclear and hydro sources, according to the company press note.
"The creation of Alvance highlights the global nature of our ambitions. We've made huge progress in both consolidating our steel network worldwide and delivering higher value-added products to our consumers. Alvance now aims to establish itself as a champion for GREENALUMINIUM. Extending our CN30 target to this part of the business is both a logical and necessary step in its development," Gupta said.
Source: Platts |
