Brasileira de Aluminio, the aluminum unit of the Votorantim Group, intends to spend BRL4bn ($748mn) on upgrading and ramping up production at its plants in Brazil. 

 

The company’s chief executive, Ricardo Carvalho, told the media that the funds will be used to streamline the production process at smelters to lower its carbon footprint. This project includes increasing the company’s secondary billet production and considering the use of renewable energy at the smelters, Carvalho added. 

 

The company also wants to replace Guinea as a bauxite supplier and is looking to clinch 4.5mn mt in supply contracts from China and the UAE.

 

Aluminum shortage amid China cuts

Brasileira de Aluminio is betting on the impending aluminum metal shortage on a global scale since China, one of the net producers is now cutting output to lower its energy consumption. The relocation of smelters from both Guangxi and Inner Mongolia to Yunnan for hydropower will also create a sharp drop in metal supply from this nation. Estimates measure close to 500,000mt to 1mn mt of lost capacity and even more temporarily suspended, according to media reports. 

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