Sanjeev Gupta’s GFG Alliance announced on Monday its decision to gather its aluminium assets into one Paris-based firm named ALVANCE Aluminium Group (ALVANCE).
The announcement by the privately-held metals conglomerate is following through on an announcement it made last fall that its steel assets would soon be merged in anticipation of a listing on a major stock exchange. The firm told Reuters at the time that a similar move with its aluminium assets was likely in the offing for a similar reason.
Included in the new firm is GFG’s aluminium smelter in Dunkirk, the aluminium smelter in Fort William, Scotland, and an aluminium wheels plant and engine cast parts plant, both in France. ALVANCE will also be the home of the Duffel aluminium plant once the sale from Aleris is complete.
Sanjeev Gupta, Chairman of GFG Alliance, noted the importance of the move to the firm and the global aluminium industry as a whole.
“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 CN30target to this part of the business is both a logical and necessary step in its development.
“Given the rise in customer demand for stronger, lighter-weight, recyclable materials, we see aluminium as a key opportunity for growth and sustainable profitability,” he continued.
“However, we operate in an international market that’s both cyclical and under competitive pressure, and so by combining our businesses, we’re looking to achieve greater synergies, increase efficiencies and ensure the business is fit to meet the challenges ahead. ALVANCE is a key supplier to Europe’s automotive and general industrial space so the unique selling point of GREENALUMINIUM is a strong marketing proposition.”
At present a multinational management team is in place for the new venture, and the search for a board of directors for the firm continues.