Alvance Looking For Raw Materials And Value Added Components In Quest For Vertical Integration

Alvance Looking For Raw Materials And Value Added Components In Quest For Vertical Integration

British commodities maven Sanjeev Gupta is shopping around for new components for its aluminium business Alvance, which it hopes to see triple production and become a fully vertically-integrated aluminium production firm.

According to comments made yesterday by CEO Arnaud de Weert at the virtual CRU World Aluminium conference, Alvance aims to be carbon neutral within a decade as well, all while boosting production to one million metric tons per annum.

“We’re looking at whatever’s coming on the table and talking to the people who own assets that would fit our portfolio,” he told the online assemblage.

“And we’re in a little bit of luck because it seems that quite a few primary producers and integrated players are reviewing their portfolios.”

The Paris-based firm is shopping for raw materials and value-added components in order to become vertically integrated and cushion itself against price fluctuations, explained de Weert.

“We’re not in alumina processing or bauxite mining yet, but our vision is to capture the complete aluminium supply chain.”

Alvance already owns Europe’s biggest smelter at Dunkirk, and a buyout of Novelis’ automotive aluminium plant in Duffel is pending authorization from regulators in the People’s Republic of China, he noted.

Ultimately, Alvance intends to market aluminium on the London Metal Exchange, which will also protect it from price declines, he said.

“Because typically we’re in the second quartile cost positions, when the LME goes up, we will hedge to protect the downside for the future years.”

Alvance is a part of the GFG Alliance, which is a conglomerate with several interests in steel, aluminium, and infrastructure. Alvance employs about 1,700 workers and boasts an aluminium production rate of 332 thousand metric tons per annum at present.