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Aluworks Limited is seeking $ 40 million to optimize its operations following a judgment against the dumping of cheap Chinese aluminum products in the Ghana market.
The 50.00 ton capacity aluminum plant has struggled over the years mainly due to cheap imports and low patronage.
In an interview with the Ghana News Agency in Tema, Mr. Kwasi Okoh, Managing Director, said that the dumping of aluminum coils and others had caused a progressive loss of their market share over an extended period.
“A specific example is that we produced and sold more than 15,800 tonnes of aluminum flat rolled products in 2006, but only around 3,800 tonnes were produced and sold in 2018, showing a 75% loss of market share.”
He said Aluworks was crucial to Ghana’s Bauxite Aluminum Plan and its demise would jeopardize any serious national aluminum plan.
“Today importing is much cheaper than manufacturing, as our aluminum businesses are importing. Some of the Indian and Chinese traders are bending Ghana’s law to facilitate their aluminum business. “
According to Mr. Okoh, “While the unfair import trade has continued, Aluworks Limited has collapsed, but Aluworks serves hundreds of downstream customers and has hundreds of workers, each with dependents.”
He called on the Social Security and National Insurance Fund (SSNIT) and Qatar-based Caitlin to stop the disputes and channel the necessary resources to revamp the company.
“We should rejoice now after the verdict, but where is the money to work and make a profit? SSNIT, our main shareholder disagrees with Caitlin, ”he said.
Ghana’s International Trade Commission ruled in favor of Aluworks, against the dumping of aluminum coils from China.
Aluworks had submitted a petition to the GITC about unfair business practices.
Despite the decision, the commission’s vice president, Professor Paul Kuruk, said that imported products from China have caused significant damage to Ghana’s industry.
Source: GNA
