Alba cuts 19pc output as Hormuz closure disrupts trade

INDUSTRIAL NEWS

Aluminium Bahrain (Alba), the world’s largest aluminium smelter on one site, has initiated a controlled and safe shutdown of Reduction Lines 1, 2 and 3, which together represent 19% of Alba’s total production capacity of 1,623,000 metric tonnes per annum, as an operational measure to preserve business continuity amid ongoing supply and transit disruptions affecting the Strait of Hormuz.

Announcing this today (March 15), Alba said this targeted, line-specific action is designed to optimise the utilisation of its existing raw materials inventory and prioritise operational stability across Reduction Lines 4, 5 and 6. 

By concentrating strategic raw materials’ inputs on the most sustainable operating configuration, Alba aims to maintain production resilience, manage working capital prudently, and develop alternatives to reduce exposure to near-term supply volatility, it stated.

As part of the controlled and safe shutdown strategy, Alba said it will use the opportunity to implement structured asset care and maintenance for Reduction Lines 1, 2 and 3, including comprehensive housekeeping and cleaning activities, to maintain equipment integrity laying the foundations for the decision to safely restart the affected lines, once overall conditions improve. 

The controlled and safe shutdown is being executed in a manner intended to minimise health, safety, environmental, and operational risks, while safeguarding the long-term performance of the affected assets, it added.

Alba said the company continues to monitor and respond to the situation and will provide updates to the market as appropriate. The company is also working closely with suppliers and customers to manage commitments and mitigate disruption.

The safety of Alba’s employees and contractors’ personnel, the protection of its assets, and the reliability of supply to customers remain Alba’s highest priorities, it added. 

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