Aluworks seeks $40m working capital to optimize operations
Aluworks Limited is seeking $40 million to optimize its operations on the back of a ruling against the dumping of cheap chinese aluminum products on the Ghanaian market.
The 50, 00 tonne capacity aluminum 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, Managing Director, said the dumping of aluminum coils and others had resulted in a progressive loss of their market share over a long peroid.
“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 aluminum.
“Today importing is far cheaper than manufacturing as our aluminum businesses are importing. Aome of the Indian and Chinese traders are bending Ghana’s law to facilitate their aluminum business.”
According to Mr Okoh, “While the unfair import trade has continued, Aluworks Limited has been sinking but Aluworks serves hundreds 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 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 aluminum coils from China.
Aluworks had petitioned the GITC over the unfair trade practices.
Pesenting 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.
Source: GNA