Aluworks registers high exports performance

Accra, April 28, GNA - Aluworks, manufacturers of semi-finished aluminium products, said on Friday that it had registered "a hugely positive performance" on the export front, with sales totalling 205 billion cedis.

Mr William Inkumsah, Board Chairman, told shareholders that out of the total sales of 17,647 tonnes; 8,327 tonnes were exported, representing about 47 per cent of the sales tonnage. It is also the highest ever export sales recorded in the company's history.

Nigeria, Togo, Benin, Burkina Faso and Cote d'Ivoire are the main destinations of the Company's exports.

Mr Inkumsah said despite this achievement the Company's sale of 17,647 tonnes of products was far less than 19,497 tonnes sold in 2004. He mentioned high and volatile aluminium prices on the world market, imports of thin gauge aluminium into the country and machinery breakdown as some of the problems that contributed to the low sales figure in 2005.

The Company, however, made a net turnover of 478 billion cedis and an operating profit of 28.3 billion cedis, which was higher than the previous figure of 25.3 billion cedis.

Mr Inkumsah said the prospects of good financial results had brightened with the re-start of operations of the Volta Aluminium Company (VALCO).

Prior to the coming on stream of VALCO in September 2005, Aluworks had to import aluminium ingots from Switzerland. In February 2006 Aluworks and VALCO signed an agreement for metal supply, which Mr Inkumsah said would stimulate continuous production and a reduction in operating costs.

According to him, the Board had also given approval to the implementation of a coil coating line project designed to add value to the Company's products.

There are also plans to acquire a second Cold Mill for the production of 0.35 millimetre material, a product currently in high demand.

Mr Inkumsah said the Company would also pursue cost cutting measures and adopt global competitive sourcing of spares and consumables.

Touching on the recent fire outbreak at the Company, Mr Inkumsah said repair works were almost completed and production would soon resume at the plant.