prijava
MOSTAR, April 14 (FENA) - Aluminij Industries d.o.o., a subsidiary of M.T. Abraham Group, and Aluminij d.d. Mostar signed the lease agreement for the Mostar based company seven days ago and it marked the start of a new phase in the life of a former economic giant that has fed thousands of households in Mostar and Herzegovina for years.
In an interview with FENA, Director of M.T. Abraham Group Isaac M. Tamir said that the Covid–19 pandemic would affect the implementation of the strategic plan, but restarting production process at the foundry plant is planned in 2020, while electrolysis should begin in 2023.
When it comes to debt of more than KM 400 million, which stopped production in Aluminij in July 2019, Tamir said that the debt is in no way related to the new company Aluminij Industries and that the debt would not affect the start of production.
FENA: Could you give us walk through your strategic plan for Aluminij Mostar?
Isaac M. Tamir: Our Group has firm belief in the future of the aluminium industry in BIH. It is essential to ensure that we accomplish our Group’s objectives which are to increase production capacities and stabilize the existing smelter operations, introduce new operational efficiencies, open new and high end lines of products, mainly for export, which will create more labour positions in the factory and the surrounding industries which link to it. With our expertise, we aim to enhance the management practices that will ensure long term stability and profitability, thus, showcasing once again the Federation of Bosnia and Herzegovina as a regional and global manufacturer and exporter of aluminium.
FENA: How will corona virus pandemic affect your plans?
Isaac M. Tamir: While the scale of the COVID-19 pandemic and its effect is not yet fully known, it is evident that it will have a dramatic impact on the global economy in general and on the aluminium industry in particular. The next months, and in some aspect years, will no doubt be challenging, but this crisis will be over and as much as the concerns it raises are natural, it would be irresponsible and short sighted to allow them to affect our decisions and judgment. While COVID-19 pandemic is present, our plans for Aluminij, as for all of our companies, will be adjusted accordingly but remain intact.
FENA: It was announced previously that production in cast house facility will start sometime during 2020. Is that goal still achievable having in mind COVID-19 pandemic?
Isaac M. Tamir: We are still aiming to start production during the summer, but as we can’t predict the outcomes of the COVID-19 pandemic on the supply chain, we have to remain tuned and adjust our plans to the current realistic market trends. We are currently working on our strategic plan, even though COVID-19 creates severe setback, we hope to start production once we complete all of our objectives as outlined in the signed agreement.
FENA: How will you handle debt which caused company to shut down and could you tell me precisely how big is that debt?
Isaac M. Tamir: The debts belong to Aluminij d.d. Mostar, our company Aluminij Industries d.o.o. has no debts whatsoever.
FENA: Can production start before the problem of debt is taken care of?
Isaac M. Tamir: Yes, there is no relation to the debts.
FENA: How big production are you planning to have and can you compare that with quantity of aluminium produced in Mostar before plant shut down?
Isaac M. Tamir: We will start with 50-60,000 MT per year during 2020-2021 as opposed to 110-120,000 MT previously achieved prior to the shut down and it is planned to be increased to 75-90,000 MT after our expansion and upgrade plan which will be executed by our partners NFC."
FENA: How many workers are you planning to hire? Will that be workers who previously worked in Aluminij Mostar and how big will their salary be?
Isaac M. Tamir: As outlined in the agreement, we will give priority to former employees of Aluminij, but we are open to received new employees who will be holding the right qualifications. At the first phase we aim to hire 140 employees, and their salary would be very competitive.
FENA: Having in mind price of aluminium and price of electricity are there any realistic chances that production in electrolysis plant will be renewed?
Isaac M. Tamir: We are currently negotiating with various electricity sources outside BIH to secure supply for a long-term agreement. At the current markets and decline in demand due to COVID 19, we see an opportunity to secure a stable and feasible electricity price which will allow us to activate the electrolysis plant hopefully by 2023, as a major upgrade must take place due to the inappropriate shut down back in 2019. The upgrade process of the electrolysis plant will take 12-18 months, it will also be done by NFC. In view of the long term, we are currently working to ensure our own electricity supply to supply Aluminij with a steady and affordable supply of electricity, and the construction of Gas based PP, which will be constructed by CMEC.
(FENA) A. B.
