Aluminij Engaged in Six Million Euro Worth Modernization of the Casthouse

In Zagreb (Croatia), Aluminij concluded the ​​six million euro contract on implementation of the modernization project for the remaining part of the production process in the casthouse, to be more exact, for the purchase and installation of the casting furnaces with capacity of 50 tons, and the new casting line of small alloy ingots, weighing 6-8 kg, that are in great demand at the metal market.

- The contract was signed with the Austrian company Hertwich Engineering, which is a leading manufacturer of the casting furnaces for homogenization and the horizontal casting lines as well as the ingot casting lines. This is the state of the art equipment whose installation starts immediately, and the project will be completed by December next year and we will start with the commercial production of ingots of the European standard in January 2013. Usually the deadline for similar ventures is about 18 months, therefore the success of Aluminium to negotiate shorter period of implementation of this project with well-known company Hertwich is definitely considered as another confirmation of our reputation among our partners in the world - said the Executive Director for Technical Affairs and Development of Aluminij, Mr. Željko Boras.

The production upgrading of the Mostar Casthouse, which is listed as one of the top six in the world by the world's leading experts in the aluminum industry, is part of the Aluminij`s  Management Work Plan for this year, which involves investments in new projects using borrowed funds, under most favorable conditions.

- Since being shaken by recession, Aluminij has not been able to take out this project independently so we signed a contract with our longtime partner the Swiss Glencore, who also finds its interest in this project, to grant a credit for this investment at more favorable interest rates than those we get from commercial banks. This contract is a major achievement of this Board of Directors, and I'm particularly proud of it, and with such a large investment Aluminij stands out in its environment in the best possible way - said CEO of the company Ivo Bradvica. He also explained that the new furnace gives possibility for production of additional 30 thousand tons of primary aluminum, whose increasing demand is much bigger from our optimal annual production amounting to less than 130 thousand tons.

Otherwise, the existing production line of small ingots, weighing 15 kg, was installed in 1980 and today it is impossible to purchase spare parts for it so every failure brings into question the overall production, which is why Aluminij has not been able to accept larger orders and guarantee delivery of ingots in a given quantity. Since all the production plants in the casthouse have been modernized in the recent years (exceptof the casting line for ingots and wire) together with the German Inotherm, the American Wagstaff, the Austrian Hertwich and the French Sermas, this investment is only a continuation of this gigantic process.

- It is a classical furnace for melting and odstajivanje or for the preparation of liquid metal. However, with stronger burners opens us the possibility  to melt primary aluminium as well, which increases the production and product flexibility. It is very important to us that  regenerative burners of that furnace  ensure better combustion of gases and less pollution, even though Aluminij is in this field always within the permitted level, which is confirmed by ISO Certificates and the environmental permit issued by  the   Ministry of Environment Protection of the FBiH Government. Even now up to 90% of our production consists of slabs and billets, and  ingots and wire the remaining 10% of the production because  the recession and the drop in car production significantly declined  demand for ingots. Now the situation is significantly different, there is demand for ingots in market, so we have been adapting to the needs of our customers - explains Boras.

Satisfied with this achievement, Executive Director for Economic and Financial Affairs of Aluminij Mladen Galić added that, thanks to Glencore, we concluded a deal with a new partner, the Swedish company Scandinavian Steel AB, who will deliver us 1,800 tons of silicon during 2012, and by 17% percent lower price compared to the one that we used to pay for this raw material. In 2013 we are going to mark 15 years of the successful cooperation with Glencore who remains our biggest customer, but also our regular supplier alumina (250 thousand tons per year) and fluoride (2,600 tons per year).