Anhui Biopin IOT Group

In a significant move highlighting the aluminium sector's shift towards sustainability, representatives from Brazil's Ministry of Mines and Energy (MME) and the Brazilian Association of Large Energy Consumers (Abrace) recently visited Alcoa Brazil. Their destination was the Poços de Caldas facilities, a key site in Alcoa's Brazilian operations.​ Poços de Caldas boasts a complete mine - to - metal process, from bauxite mining to alumina refining and primary aluminium smelting. This vertical integration gives Alcoa strong control over its production chain. The visit aimed to explore Alcoa's progress in sustainability, crucial for its 2050 net - zero GHG emissions goal for direct and indirect emissions.​ Sarah Pimenta, Environment and Licensing Manager at Alcoa Poços de Caldas, revealed that in the past three years, Alcoa invested R​1.6billion(US 262.2 million) in production process transformation projects. These efforts, from bauxite extraction to refining, are reducing the company's carbon footprint. The unit has already cut greenhouse gases by 30% compared to 2019. This achievement is due to technology investment and sustainable practices like in - process aluminium recycling, using electric boilers in the refinery, and implementing a water - saving filter press for bauxite residue disposal. Leandro de Oliveira Albuquerque, Director of Programs at the National Secretariat for Energy Transition and Planning, praised Alcoa's decarbonisation and waste - treatment projects. He stated they're excellent examples for the sector, aligning with the government's push for reduced carbon emissions and more sustainable operations. These initiatives will be used as models for plans like the Climate Plan and New Industry Brazil.​ Accompanying Albuquerque were José Luiz Ubaldino de Lima, Director of the Department of Geology and Mineral Production, and Sérgio Soares Ayrimoraes, General Coordinator of Integrated Studies. Abrace also sent representatives. Its President, Paulo Pedrosa, emphasized the visit's importance for understanding industries investing in energy transition. He noted the need to analyze energy - consuming industries to boost their competitiveness for domestic supply and green product exports.​ At Alcoa, Pimenta, along with Maria Cristina Gonçalves (Government Relations and Communications Manager), Juliana Noronha (Institutional Relations Manager), Rafael Garrio (Commercial Energy Manager), Daniel Soares (Regional Environment Manager), and Jéssica Milani (Energy Manager), welcomed the delegation. In my view, this visit is a positive sign. Alcoa's substantial investment in sustainability not only benefits the environment but also positions the company well in a market increasingly focused on green practices. For Brazil, the government's interest in Alcoa's initiatives can drive the aluminium industry and other energy - intensive sectors towards a more sustainable future. The involvement of Abrace shows growing industry awareness of sustainable energy use. However, while Alcoa is leading the way, broader industry adoption of such practices is needed to achieve true sustainability in Brazil's aluminium production.

In a development that sends ripples through the aluminium industry and local communities, Aluminium producer Novelis has made the tough call to shutter another one of its US manufacturing facilities. This announcement comes on the heels of a series of challenging decisions the company has had to make in recent times.​ According to a Worker Adjustment and Retraining Notification (WARN), its Richmond, Virginia, USA facility is set to close its doors on May 30. This closure will unfortunately lead to the loss of 72 jobs. It's always disheartening to see workers bear the brunt of such corporate decisions. These are individuals who have dedicated their time and skills to the company, and now they face an uncertain future. The Atlanta-Georgia headquartered company's Richmond rolling mill has been utilising pellet casting technology to churn out aluminium rolled sheet for the building and construction industry. This industry has been a significant consumer of aluminium products, but perhaps the current market conditions, which might include factors like a slowdown in construction activities, intense competition, or high production costs, have forced Novelis' hand.​ Earlier this week, the company also disclosed that its Fairmont facility in West Virginia would close permanently on June 30, resulting in the loss of nearly 200 jobs. It's quite concerning to witness two major closures in such a short span. One can't help but wonder what this means for Novelis' overall operations in the US. Are these closures a sign of a broader strategic shift, or are they merely reactions to immediate financial or market pressures? In my opinion, these closures could have far-reaching implications. For the local economies where these plants are located, the loss of jobs will be a significant blow. It will not only affect the workers directly but also the businesses that rely on their spending power. The building and construction industry, which depended on the products from these facilities, might also face supply disruptions and potentially higher costs.​ Moreover, from a global perspective, it could impact the aluminium market's supply dynamics. Novelis is a major player, and reducing its production capacity in the US might lead to a shift in where the market sources its aluminium products. The company might be looking at these closures as a way to streamline operations and cut costs. However, it also needs to consider the long-term impact on its brand image and relationships with customers and suppliers. It will be interesting to see if Novelis plans to invest in other areas of its business or if it will try to reposition itself in the market after these closures.​ As for the workers affected, one hopes that the WARN notice will indeed provide them with some support in terms of retraining and finding new employment opportunities. It's a difficult time for them, and the industry as a whole should perhaps take a step back and evaluate how such situations can be mitigated in the future.​ In conclusion, the closures of Novelis' facilities in Richmond and Fairmont are not just isolated events but rather symptoms of a more complex situation within the aluminium industry in the US. It remains to be seen how the company, the affected workers, and the industry will adapt and move forward from here.

Alcoa has charted a path forward for its San Ciprián aluminium complex in Spain. The company has entered a joint venture (JV) with Ignis Equity Holdings to breathe new life into the smelter's operations. Alcoa will hold a 75% stake and remain the managing operator, while Ignis takes a 25% share. To establish the JV and fund operations, Alcoa contributed $81 (€75) million, and Ignis put in $27 (€25) million. Alcoa may further inject up to $108 (€100) million as needed, with priority in future cash returns. Any additional funding must be agreed upon by both partners, with Alcoa covering 75% and Ignis 25%. This JV paves the way for the planned 2025 restart of the San Ciprián smelter, fulfilling a promise made in the Viability Agreement with employees when the smelter halted in 2021 due to soaring energy costs. Preparation work for the restart was already in motion before the JV deal. In 2024, the smelter faced financial woes, posting a pre - tax net loss of around $50 million and negative operating cash flow of approximately $60 million. Net cash outlays that year covered employee compensation and holding costs during full curtailment, along with limited casthouse production to meet customer obligations. Given recent pricing trends, Alcoa anticipates a pre - tax and non - controlling interest net loss of $80 - $100 million for the smelter in 2025. The restart will require $10 million in capital expenditures. In my view, this JV is a strategic move by Alcoa. The company is leveraging external investment to revive a key asset. By bringing in Ignis, Alcoa spreads the financial risk, which is crucial considering the smelter's past losses. However, the expected losses in 2025 show that the road to profitability will be challenging. The aluminium market is volatile, and high energy costs remain a threat. Alcoa will need to optimize operations and closely monitor market conditions to turn the San Ciprián smelter around. This venture also sets an example in the industry of how companies can collaborate to rescue struggling assets and potentially create value in the long run.