The management of the Aluminium Smelter Company of Nigeria (ALSCON) says it spends $500,000 (about N10m) monthly to maintain facilities and equipment at its factory located in Ikot Abasi Local Government Area of Akwa Ibom State, since it took over the plant in 2007.
It adds that more than $130 million has been invested in the smelter to modernise facilities beginning from 2007, when the company began operations.
In an exclusive interview with Businesday in this office at Ikot Abasi, Zaviyalov Dmitry, the company’s managing director, said while the plant was in operation, it suffered many disruptions in gas supply which resulted in partial and later full suspension of operations, saying that the company incurred huge losses running into millions of US dollars on remedial works and recovery of production process.
He however said that Rusal, the Russian firm running the plant, was in talks with the new administration in the country with a view to restarting the plant, saying “we are currently in talks with the government in Nigeria for possible supply of gas to the plant. This is the key issue for ALSCON to restart production.’’
Identifying constant power supply as key to the company returning to production, he said the management was constrained to shut down the plant in 2013 due to gas supply interruptions, security as well as legal challenges, adding that since then the plant had remained idle.
“At present, the company is conducting Nigerian market survey research. We are studying the volume of aluminium goods consumed, evaluating new demand and opportunities to produce and distribute not only in the primary aluminium but also value added products, such as wire rod, for the manufacture of overhead power lines, cables of different kinds and aluminium profiles,’’ he said.
He expressed hope that the new administration in the country “will see reasons with us and constructively help us in resolving the issues and equally support our operations here in Nigeria,’’ saying if the challenges were resolved “together with our Nigerian partners, we can restart the plant and by so doing render our contributions to the growth of the Nigerian economy.’’
Dmitry described the medium-term economic outlook for Nigeria as being good, saying the demand for aluminium would continue to grow while the country would constantly face a shortage of aluminium on the domestic market.
According to him, the company has plans to sell more primary aluminium to Nigerian manufacturing companies, and described ALSCON as part of the company’s strategic assets, having the image of Nigeria on the international aluminium market.
He solicited the support of the government in addressing the challenges facing the plant, saying the management had prepared a long-term development plan for ALSCON, but stressed that without the support of the “government we might not be able to restart the plant.’’
ALSCON, the only smelter plant in the country, was taken over by Rusal in 2007, but was shut down due to “numerous disruptions in gas supply.’’
ANIEFIOK UDONQUAK, Uyo
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