Glencore expands its position into the aluminium market with Aluminji’s $141.2 million green deal project

Aluminij, the Bosnia-based aluminium producer, has signed a deal with Glencore and Duferco to produce 100 per cent green products. Under the agreement with Glencore, a 60-megawatt (MW) solar power plant and an aluminium recycling facility will be built. As per the reports, the total deal is valued at 250 million Bosnian marka ($141.2 million).

According to Amir Gross Kabiri, the CEO and Founder of Aluminji, the agreement with Duferco will include constructing a new facility for green aluminium manufacturing for the automotive sector and aluminium wire manufacture. Both the projects are expected to be completed by 2025. Aluminij was the first firm in the Western Balkans to complete the Carbon Footprint Certification procedure, demonstrating compliance with CO2 footprint requirements established for aluminium manufacturers.

However, Glencore is leaving no stone unturned to expand its presence in the aluminium industry and promote the importance of decarbonisation of the environment. Last month, Glencore purchased an equity stake in Alunorte to expand its operation in the aluminium sector. For the same, Glencore agreed to pay about $700 million for the equity interests upon the conclusion of the agreement in the second half of 2023.

"Our annual production capacity is 250,000 metric tonnes of billets, ingots and slabs," said Amir Gross Kabiri. He also added that the company's output in 2020 had increased from 75,000 tonnes due to the modernisation of its equipment.

Aluminij, headquartered in the southern town of Mostar, was closed down in 2019 due to accumulated debts. Still, the following year it was bought by the Israeli M.T. Abraham Group, which leased its complete facility for 30 years and resumed production. It was Bosnia's top exporter in 2022, with more than 1 billion marka in exports and the Balkan country's largest importer. The organisation's primary purpose is to deliver completely green goods by 2025.