Azerbaijan aluminum factory complex halted manufacture because of flat market

Baku, Fineko/abc.az. Azerbaijan Aluminum (Azeraluminium) joint stock company has stopped fully activity of its raw material section – Gil Torpag (Alumina) in Ganja. The Company reports that operation of the enterprise was stopped because of impact of the global economic crisis and lack of demand for aluminum products from Azerbaijan at world markets. In 2007 at the opening ceremony of the first and second electrolysis shops in the Azeraluminium’s Sumgait-based factory of nonferrous metals President Ilham Aliyev of Azerbaijan claimed that the government was ready to raise up to $100 million to ensure export of 150,000-160,000 tons of aluminum a year. “Output should be exported under trademark Azeral, and that will be a contribution to non-oil sector development,” he said then. At the world market then a ton of aluminum cost $2,700 and annual demand for it made 33 million tons. Sumgait enterprise’s capacity was increased up to 60,000 tons due to investments of AZN 62 million. Bauxite from India and Guinea was imported for the factory. At the same time Ganja-based “Glinozyom” factory increased its aluminum manufacture from 87,000 tons in 2001 up to 423,600 tons in 2006. In 2009 it was planned to commission a new aluminum factory with capacity of 100,000 tons a year that would ensure domestic aluminum production up to 160,000 tons. Azerbaijan also has a possibility to process up to 100,000 tons of aluminum oxide from Tajikistan. Investments in the Ganja factory were estimated in $212 million.