Integrated South African metals company Alfeco Group has recently acquired the Hulamin Extrusions plant, in Olifantsfontein, Midrand.
The extrusion assets, which are now part of Alfeco’s new aluminium division, with a design capacity of 20 000 t/y, have been renamed Veer Aluminium.
The acquisition of the aluminium business signals further growth and commodity diversification to include in its ferrous and nonferrous metals portfolio.
Veer is currently recommissioning the operation and is also embarking on a significant expansion project.
The expanded plant will strategically incorporate a fully integrated model that will be based on the recycling of aluminium scrap, as South Africa currently recycles very little of its aluminium scrap.
Veer estimates that South Africa will experience a sharp growth in recycled aluminium primarily owing to competitive cost economics, wide ranging applications, significant environmental benefits and lower capital intensity.
The group’s s strategic visions is to establish, grow and expand integrated metals beneficiation, with the acquisition aligned to this. A key objective being pursued through the expansion is to create a secondary aluminium ecosystem and hub.
The first phase of re-establishing the extrusion operation is well under way and is expected to come on line at the end of the second quarter, group CEO Sachin Ahuja says.
“This is to be followed by the second phase which involves the expansion of the plant to encompass scrap processing, melting, casting and rolling. This will require significant capital being injected into Veer Aluminium,” he adds.
Meanwhile, Veer and the Council for Scientific and Industrial Research are discussing a potential cooperation partnership that aims to focus on research, development, innovation and creating an aluminium-based circular economy and helping to improve South African livelihoods.