Aluar plans to move ahead with investments - Argentina

Argentine aluminum producer Aluar (Buenos Aires: ALUA) will move ahead with expansion plans at its plant in Chubut province and expects to keep employees on its payroll despite the global crisis, a local official told BNamericas. "Company president Javier Madanes had a meeting with governor [Mario] Das Neves and announced that investments in expansion will move forward," the official said. In February the company asked shareholders for permission to issue bonds worth US$300mn to wrap up the second expansion stage that will add 96 electrolytic cells with an investment of roughly US$500mn. Aluar is already carrying out a US$315mn investment to add 72 cells. Expansion works will increase aluminum production to 105,000t/y for the domestic market. Last June Aluar fired up 24 new electrolytic cells in the first stage of the expansion project and boosted capacity by roughly 137,500t, taking it from 272,500t/y to 410,000t/y. After the next expansion, the company's capacity will reach 515,000t/y. Aluar is Argentina's only primary aluminum producer and exports 85% of its production, mainly to the US, the EU and Asia. The company is controlled by the Madanes Quintanilla family.