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

Hindalco Industries, an Indian company, has halted the production of value-added extruded aluminum due to a gas shortage in response to supply disruptions in the Middle East. This was revealed by a notice from the company.

Aditya Birla Group owned metals producer declared force majore to all its extruded aluminum customers on March 11.

In a statement to the.

The company stated that they had sent a notification to their customers regarding the potential disruption of supply in one segment of "the extrusions" business after certain gas suppliers declared force majeure.

Hindalco said that the aluminium?extrusions sector represents a small part of the company's overall production capacity. The potential impact on the company 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 solar panels, electronic devices, construction 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 shortages of cooking gas.

In the notice, the company said that it has "taken and continues to take all reasonable measures" to minimize the impact of a force majeure event.

Hindalco’s?aluminum smelters remain operational however, according to?sources who declined to identify themselves because they weren't authorised to talk to the media.

(source: Reuters)