According to foreign news on February 4, Greece's Metlen Energy & Metals CEO Metallurgy Dimitrios Stefanidis said in an interview with S&P Global Commodity Insights, Demand for aluminium in Europe remains fragile due to low activity in key aluminium consuming sectors such as automotive and construction, while global trade tensions are creating more unpredictability.
"The aluminium market remains in a precarious state due to macroeconomic uncertainty, geopolitical developments and changes in trade policy," he said.
Metlen's Greek aluminium plant is located in Agios Nikolaos, central Greece, with a primary aluminium production capacity of 185,000 tonnes per year.
Metlen has "taken proactive steps to mitigate supply chain risks, including strategic investments in bauxite assets such as European Bauxites and new mining developments in Ghana," Stefanidis said.
The recycled aluminium business is also growing and "is expected to play a key role in meeting future supply needs, and Metlen is also engaged in this activity," he said.
Stefanidis said that, unlike many of its industry peers, Metlen had maintained full capacity in Europe and "demonstrated resilience in the face of market headwinds."
Platts, a unit of S&P Global Commodity Insights, assessed that on February 3, the price of untaxed low-carbon aluminum in Rotterdam warehouses was $330 / ton, and the price of duty-paid aluminum in Rotterdam warehouses was $370 / ton, up 74% and 40% respectively since the beginning of 2024.
Metlen announced in January that it would invest 295.5 million euros ($305.5 million) to increase alumina production capacity at its aluminium plant in Greece from 865,000 tons per year to 1.265 million tons per year.
The company also plans to start production of bauxite and gallium at the plant, with targeted production volumes of 2 million tons and 50 tons per year, respectively.
Stefanidis said the company already has 1 million tonnes per year of bauxite production capacity through its metallurgical division, which underpins its internal demand and external supply agreements.
He said the new investments include a new alumina production line and the removal of bottlenecks at existing facilities.
Current activities include the expansion of alumina facilities, as well as a number of ongoing aluminum production projects to reduce energy consumption.
"Both the alumina expansion and gallium production will be built at our alumina and aluminium industrial park in Agios Nikolaos," Stefanidis said.
"Part of the investment will be focused on modernising and upgrading the Hellenic aluminium plant to improve operational efficiency, increase alumina production and integrate new technologies to support the company's sustainability goals," he added.
Stefanidis said the expansion of alumina and gallium production is in line with market demand and the company's strategic objectives of diversification and sustainability.
"The expanded alumina and gallium production capacity will primarily target the European market, including key industries in Germany, France and Italy. In addition, Metlen will look for opportunities in North America and Asia based on demand trends."
The bauxite project is scheduled to be completed and put into production in 2026, and the production of alumina and gallium will begin gradually from 2027 and be fully operational by 2028.
The investment also includes port expansion, which Stefanidis said includes extending the port terminal and upgrading port facilities to enable the offloading of bauxite vessels to reach 63,500 tonnes.
