Hindalco stops production of aluminium extruded products because of the Iran War, notice states

Hindalco Industries in India has halted the production of extruded aluminum, a high-value aluminium product due to a shortage of gas resulting from disruptions to the supply of natural gas to the Middle East, according to two sources and a notice by the company.

Aditya Birla Group owned metals producer declared Force Majeure to all its extruded aluminum customers on March 11th, the notice stated.

In a letter to the.

The?company stated that they had sent a notification to their extrusion clients after certain gas suppliers declared force majeure. They said it was "a routine business notice regarding a possible supply disruption in one segment of the business."

Hindalco said that the 'aluminium-extrusions segment' only represents a small part of the production capacity of the company. The potential impact on its operations is currently less than 0.1%.

Hindalco stated that "all other downstream and upstream operations, including primary aluminum, continue to run normally with the support of captive power?and alternative energy arrangements."

Aluminium extrusion is used for construction, electronic devices, solar panels, and electric vehicles.

India is experiencing its worst gas shortage in decades due to the U.S.-Israeli attack on Iran. The government has cut supplies to industries to protect households from any shortage of cooking gas.

The company stated in its notice that "Hindalco continues to take all reasonable measures" to minimize the impact of a force majeure.

Hindalco’s?aluminium plants, however, are still?operational according to sources who declined to identify themselves because they weren't authorised to talk to media. (Reporting and editing by Jamie Freed, Joe Bavier, and Neha Arora)

(source: Reuters)