Hindalco of India suspends extruded aluminum production
March 16, 2026
Due to a domestic gas shortage caused by supply disruptions in the Middle East, Hindalco in India has suspended production of extruded aluminium products. The aluminium producer declared force majeure to all its extruded aluminium customers on March 11.
Extruded aluminium is a high-value aluminium product widely used in key industries such as construction, electric vehicles, electronic products and solar panels. The suspension of its production not only reflects the direct operational difficulties faced by Hindalco, but also indicates that the global supply chain tensions may have a ripple effect on a broader industrial sector.
India is experiencing its most severe gas crisis in decades, with the direct trigger being the war waged by the United States and Israel against Iran. To ensure that the supply of gas for household use, such as cooking, remains unaffected, the Indian government has been forced to cut the gas supply to the industrial sector.
Hindalco is one of the main affected parties by the government's policy of prioritizing domestic gas supply and cutting industrial gas use. Although the company stated in the notice that it has taken and will continue to take all reasonable measures to mitigate the impact of the force majeure event, the shortage of natural gas has forced it to suspend the production of some high-value-added products.
Fortunately, according to sources, Hindalco's aluminium smelter is still in operation. This indicates that the upstream primary aluminium production has not completely halted. Once the natural gas supply is relieved, the extrusion aluminium production line is expected to resume as soon as possible. However, it remains unclear how long this energy crisis triggered by the geopolitical conflict will last.
Hindalco, a metals producer under the Aditya Birla Group and one of India's largest aluminum manufacturers, has suspended its aluminum extrusion production due to a shortage of natural gas. This incident vividly demonstrates how military conflicts in the Middle East can have a substantial impact on the real economy in India through the transmission of the energy supply chain. It highlights the far-reaching influence of geopolitical risks on industrial production and supply chain stability in a highly interdependent global economy. As of now, Hindalco has not responded to requests for comment outside of working hours.
