Aluworks seeks $40 million-working capital to optimise operations
Aluminium mill, Aluworks Limited, is seeking 40 million dollars to optimise its operations on the back of a ruling against the dumping of cheap Chinese aluminium products on the Ghanaian market.
The 50,000- tonne capacity aluminium plant has struggled over the years primarily due to cheap imports and low patronage.
In an interview with the Ghana News Agency in Tema, Mr Kwasi Okoh, the Managing Director, said the dumping of aluminium coils and others had resulted in a progressive loss of their market share over a long period.
“A specific example is that we produced and sold over 15,800 tonnes of aluminum flat rolled products in 2006 but only about 3,800 tonnes were produced and sold in 2018, showing a market share loss of 75 per cent.”
He said Aluworks was crucial to Ghana’s Bauxite Aluminum Scheme and its demise would jeopardize any serious national plan on aluminium.
“Today importing is far cheaper than manufacturing as our aluminium businesses are importing. Some of the Indian and Chinese traders are bending Ghana’s law to facilitate their aluminium business.”
According to Mr Okoh, “While the unfair import trade has continued, Aluworks Limited has been sinking but Aluworks serves hundred of downstream customers and has hundreds of workers, each with dependents.”
He asked the Social Security and National Insurance Trust(SSNIT) and Qatar based Caitlin to stop the bickering and channel the needed resources to revamp the company.
” We should be rejoicing now after the verdict but where is the money to work and make a profit? SSNIT, our major shareholder is not seeing eye to eye with Caitlin,” he said.
The Ghana International Trade Commission ruled in favour of Aluworks, against the dumping of aluminium coils from China.
Aluworks had petitioned the GITC over the unfair trade practices.
Presenting the ruling, Vice-Chairman of the commission, Prof. Paul Kuruk said the products imported from China have been causing material injury to the Ghanaian industry.