Brazilian aluminium producer ‘Companhia Brasileira de Alumínio’ to venture its expansion across the value chain

The aluminium arm of Brazilian conglomerate Votorantim SA is venturing on a shortfall of the metal which is used producing from beer cans to plane parts.

Ricardo Carvalho, Chief Executive Officer, CBA said: “Companhia Brasileira de Aluminio plans to invest 4 billion reals in the next five years as it overhauls and expands operations.”

In July 2021, the aluminium company step its foot in the Brazilian bourse after a 1.4 billion-real offering also wants to do deals along the value chain.

The growth plans range with CBA’s view that the metal aluminium is approaching a supply deficit as global de-carbonisation efforts foster demand at a time when China is restricting smelting. The metal used which is used to reduce vehicle weight has held up better than most commodities despite the growing delta variant concerns and is up 44% in the past year.

Brazil’s top aluminium company plans to upgrade its facilities to diminish emissions and reinstate some operations which were languished during Brazil’s 2014 energy crisis. The project pipeline also comprises renewable energy, dry-waste disposal and additional billet output from scrap.

Simultaneously, the company is looking out for a partner to develop a 2 billion-real bauxite project at Rondon do Para in the northern state of Para. The strategy is to export 4.5 million tonnes of bauxite and to position CBA as a replacement for clients in China and the Middle East, who are presently catered by the West African nation, Guinea.

Carvalho said: “We’re having conversations with potential partners in Brazil and abroad. It could be someone who does a long-term supply contract or an investor with its take.”