Alba shuts 19% of aluminium smelting capacity

Alba said it would shutter reduction lines 1, 2 and 3 at its aluminium smelter in Bahrain due to the disruption in the Strait of Hormuz.

Aluminium Bahrain (Alba) has initiated a shutdown of three smelting lines accounting for 19% of its capacity to preserve business continuity amid ongoing disruption in the Strait of Hormuz.

Alba, which has a smelting capacity of 1.62 million tons of aluminium per year, said it had initiated a ‘controlled and safe shutdown’ of reduction lines 1, 2 and 3.

“This targeted, line-specific action is designed to optimise the utilisation of Alba’s existing raw materials inventory and prioritise operational stability across Reduction Lines 4, 5 and 6,” it said.

“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.”

Alba said it will use the opportunity to implement asset care and maintenance for the three lines including housekeeping and cleaning activities, to lay the foundations for a to safe restart the affected lines, once overall conditions improve.

The company had issued a force majeure on March 4 since it was unable to ship metal to customers due to the closure of the Strait of Hormuz.

The closure has also left Middle East smelters unable to bring in vessels which carry their raw materials, such as alumina.