Aluworks partners Caitlyn to increase production

In a bid to salvage its dwindling fortunes, Aluworks Limited says it is closing in on a deal to make an investment company, Caitlyn Limited, its strategic investor and majority shareholder.

Caitlyn Limited, currently the second largest shareholder of Aluworks, is expected to aid the aluminium business to maximise its potential and put it on the frontline of the industry.

At the 31st Annual General Meeting of the shareholders of the company, in Accra on Thursday, Chairman of the Board of Directors, Seth Adjei,  was cautious in giving datelines but was upbeat that it would not linger for long.

He said the company was awaiting the facility from its current majority shareholder, Social Security and National Insurance Trust (SSNIT).

Mr Adjei declined to quantify the facility, but said it would be used to clear outstanding account balance with Volta Aluminium Company (VALCO) Limited, to enable the company  receive raw materials without restriction, as well as boost its operations.

Delving into the performance of the company in 2017, Mr Adjei said the company incurred a net loss of Ghc23.9 million as compared to a loss of 19.3 in 2016.

He disclosed that due to factors, including the inability of the company  to procure the required tonnes of alluvium from the Volta Aluminium Company (VALCO), it produced 5,781 tonnes of products, which was 68.5 per cent of the planned production for the year.

Mr Adjei said although the company’s turnover increased by 22 per cent from 69.5million in 2016, to 84.5 million in 2017, it was suppressed by the lack of sales volume due to limited raw material supply.

Due to the unsatisfactory finances, he announced that the directors could not recommend a dividend for the year ended “as we continue to have a deficit on our income surplus account.”

However, Mr Adjei assured the shareholders that the financial support from SSNIT and other measures being put in place would help increase production and improve the day-to-day financial health of the company.

He said the emphasis of the company would shift to marketing as well as incentivise the Ghana International Trade Commission, to curb the massive flow of suppressed price inputs, which was affecting the company’s sales.

Touching on the caution from the Ghana Stock Exchange that it would delist the company if it did not put its house in order, he said the company would redeem itself.

By Jonathan Donkor

 

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