Merger Agreement between Hormozal and Almahdi Reduced costs
The merger agreement signed between two of Iran’s biggest aluminium producers on the 19th of December 2010 with the aim to reduce costs was a success says Akbar Golkar CEO of Almahdi Aluminium Co.
Almahdi and Hormozal have the capacity to produce 110000 and 145000 tpy of aluminium respectfully.
Golkars aluminium view predicts thatIran’s aluminium production will need more attention in order to reach the goal of producing 1.5 million tons in 15 years time.Iran’s steel, aluminium & copper production capacity saw 93 percent, 90 percent & 26 percent increase in the past six year. In the same period of time aluminium capacity had a 207000 ton increase. Regarding this fact, the capacity of this strategic metal reached 437000 tons at the end of 2011 from 230000 tons six year earlier.Iransaluminium production reached 340000tons in 2011.
Hormozal’s Construction plan and Iralco’s Capacity increase are the two main reasons for the increase in production. The vast increase in capacity highlightsIranas a superior investing market in the field of aluminium.
The aluminium industry in Persian Gulf Countries has developed over the years and is set to develop even more through direct and indirect investments.
Considering the Cheap energy available in this region, many developing countries are set to enhance their industry in order to make benefit of this “light and sustainable metal”.
As one of the Persian Gulf countries,Iranplays a major role in this matter. According to the data announced by the Iranian mines & mining industries development & renovation organization (IMIDRO), Iranian aluminium smelters produced 223500 tones of aluminium in the first eight months of the (Iranian) year (which started march 21 2011) up 12% year- on-year from 192000 tones of aluminium produced the previous year.
The three main Iranian smelters, Iralco, Almahdi and Hormozal produced 118690 tones, 74315 tones and 30549 tones of aluminium respectively in the mentioned period of time.
It is predicted that with Hormozal reaching its full capacity, iran’s aluminium production will reach 457000 tons per annum.
