Alcoa (AA.US) CEO Roy Harvey said on Tuesday that the company has no plans to increase capacity by building new aluminum smelters, Zhitong Finance APP has learned. He reiterated that Alcoa would only use Elysis technology to build low-emission plants.
Harvey also said that Alcoa would not invest in traditional technologies, whether it be expansion or new capacity.
Harvey’s remarks drew attention as aluminium surged to a record high on Monday as the Russia-Ukraine conflict exacerbated a persistent shortage of global aluminium supplies. Aluminium is an industrial metal used in the production of products such as cars, aircraft, household appliances and packaging. Century Aluminium (CENX.US), the second-largest U.S. aluminum producer, kept the possibility of adding capacity open later in the day.
It is reported that Elysis, a joint venture between Alcoa and Rio Tinto (RIO.US), has developed an aluminum production technology that does not emit carbon dioxide. Alcoa has said it expects the technology project to reach commercial mass production within a few years, and pledged in November that any new plants would use the technology.
According to the World Bureau of Metal Statistics (WBMS), the global aluminium market saw a deficit of 1.9 million tonnes last year.
Boosted by rising aluminum prices, as of the close on March 1, Alcoa rose nearly 6%, and Century Aluminum rose nearly 12%.
Post time: Mar-03-2022