Aluminum demand in Europe remains fragile due to subdued activity in key consuming sectors like automotive and construction, while global trade tensions are creating further unpredictability, Greece's Metlen Energy & Metals Chief Executive Director, Metallurgy Dimitrios Stefanidis told S&P Global Commodity Insights in an interview.
"The aluminum market remains in a state of flux, shaped by macroeconomic uncertainty, geopolitical developments, and shifting trade policies," he said.
Metlen's Aluminium of Greece plant, located in Agios Nikolaos in central Greece, has a primary aluminum production capacity of 185,000 mt/year.
Stefanidis said Metlen had "taken proactive steps to mitigate supply-chain risks, including strategic investments in bauxite assets such as European Bauxites and new mining developments in Ghana."
He said secondary aluminum was also growing and was "expected to play a key part in meeting future supply needs, an activity also undertaken by Metlen."
Unlike many industry peers, Metlen had maintained full production capacity in Europe, "demonstrating resilience in the face of market headwinds," Stefanidis said.
Platts, part of S&P Global Commodity Insights, assessed the daily low-carbon aluminum prices at $330/mt duty unpaid in-warehouse Rotterdam and $370/mt duty paid in-warehouse Rotterdam Feb. 3, up 74% and 40% respectively since the start of 2024.
Metlen announced in January it would be investing Eur295.5 million ($305.5 million) to boost its alumina production capacity at the Aluminium of Greece plant to 1.265 million/year from 865,000 mt/year.
It also plans to start production of bauxite and gallium at the plant, targeting output of 2 million mt/year and 50 mt/year respectively.
Stefanidis said the company, through its Metallurgy Sector, already had a bauxite production capacity of 1 million mt/year, which supported its internal needs and external supply agreements.
He said the new investment consisted of a new alumina production line, debottlenecking of the existing facilities, and the necessary equipment to extract gallium from the spent Bayer liquor.
Current activities
Current activities included expanding the alumina facilities, as well as a number of projects on track regarding aluminum production to reduce energy consumption.
"Both alumina expansion and gallium production will be built at our alumina and aluminum industrial complex at Agios Nikolaos," Stefanidis said.
"Part of the investment will focus on modernizing and upgrading the Aluminium of Greece plant to enhance 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 aligned with market demand and the company's strategic goals for diversification and sustainability.
"The expanded alumina and gallium capacities will primarily target European markets, including key industries in Germany, France and Italy. Additionally, Metlen will explore opportunities in North America and Asia, depending on demand trends," he said.
Completion of the works and production startup was scheduled for 2026 for bauxite, with alumina and gallium output beginning gradually from 2027 and full-scale operations by 2028.
The investment also included a port expansion, which Stefanidis said included lengthening the port's dock and upgrading the port facilities to enable the unloading of bauxite vessels up to 63,500 mt.
Gallium
In December, China said it would ban exports of key critical minerals to the US, including gallium, which is used in the production of semiconductors, LEDs and solar panels.
Stefanidis said Metlen's research and development department had started studying gallium extraction long before China imposed restrictions, as there were significant levels of gallium in the company's alumina production process.
"After the restrictions, it was Metlen's decision to support Europe's transition to advanced technologies," he said.
He said Europe imported approximately 90% of its gallium needs, primarily from Asia.
"Current [Europe's] gallium demand is between 40-50 mt/year. Metlen's new production capacity will enable the company to fully substitute these imports, ensuring a stable and secure supply for European industries," he said.
