Alouette AluminumCanada’s largest aluminum smelter and an important supplier of the American market announced an investment of approximately $ 1.5 billion ($ 1.1 billion) in its northern québec facilities. The company, owned by a River Rio-Led Consortium, does this commitment, despite the growing pressure of American rates and global commercial security.
“Today’s announcement, which we have been working on for several months, makes the way free for the coming decades for our current and future employees, our communities and our business partners,” ” said Claude GosselinPresident and CEO of Aluminerie Alouette.
“We genuinely appreciate the cooperation of the government of Quebec and Hydro-québec For their relentless trust in the essential role that primary aluminum plays in the economic vitality of both our region and the province, “he added.
The investment follows a newly signed long-term electricity agreement with Hydro-Québec that will guarantee the electricity supply until 2045. With an annual capacity of 630,000 tons, the Sept-îles The facility is crucial for North -American aluminum supply chains.
Owned by a consortium that includes Rio Tinto (40%), Hydroaluminum (20%), Amag Austria Metall (20%), Marubeni (13.33%), and Features (6.67%), Aluminerie Alouette employs around 950 people and represents the largest private employer in the region.
Aluminum produced in Québec is especially important for the United States, which only has four operational aluminum smelters, which are insufficient for domestic needs. Canada supplies around 2.7 million tonnes of aluminum aluminum to the US annually, to support sectors of automotive and space travel to food packaging. However, the US has threatened the rates of up to 50% on the Canadian aluminum, a movement that is generally criticized as counterproductive.
“The United States need Quebec to meet its demand, especially because we produce 70% of all aluminum in North America,” Economy Minister of Quebec Christine Cheekyette said, according to Unpleasant Bloomberg. Yet, with American rates that push the Canadian aluminum out of the market, American manufacturers are confronted with increasing costs for essential goods, while Canada producers are looking for Europe for alternative buyers.
The Canadian aluminum industry has taken steps to protect its market integrity, including supporting the new Import monitoring system of Finance Canada and the “Land van Melt and Cast” provisions designed to block unfair trade. Jean SimardPresident of the Aluminum Association of Canada, noted that the Canadian aluminum ‘is not a back door – and will not be for unfair trade’, pointing to the leadership of Canada in traceability and sustainability.
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