Aluworks requires US$15m to revive operations
Aluworks Company Limited, a local manufacturer of aluminium products, requires about US$15 million to turn around the fortunes of the ailing company.
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It plans to use about $12m of the amount to settle its indebtedness to the Social Security and National Insurance Trust (SSNIT) and the Volta Aluminium Company (VALCO).
The Managing Director of Aluworks, Mr Ernest Kwasi Okoh, made this known to the Daily Graphic in an interview after the company’s 29th annual general meeting (AGM) in Accra.
Strategic investor
Mr Okoh also disclosed that the company was close to signing a US$25m deal with a strategic investor, Vendata Resources, one of the world’s natural resources company.
According to him, that agreement was a resolution passed by the shareholders during its last AGM authorising it to enter an agreement with a strategic partner to help turn the fortunes of the company around.
“Based on the preliminary discussions, the strategic partner is also expected to further invest in the operations of the company. If the discussions are successful, this strategic investor will become a major shareholder.
“We’re getting positive responses from the strategic partner and we are almost through with the agreement,” he said, but was quick to add that the company wanted to finish with the final agreement before officially announcing it.
Trade Commission Bill
According to the MD, the company was also pinning its hopes on the new International Trade Commission Bill, currently before Parliament.
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He noted that the contravening measure which was applied in most countries would go a long way to save the Ghanaian aluminium company.
“The immediate passage of the bill will go a long way to help us all since it will curtail the importation of cheap Chinese aluminium products onto the Ghanaian market,” he added.
Deepening losses
The Chairman of the Board of Directors, Mr Seth Adjei, said due to the hardships the company encountered during the year under review, it made a total loss of GH¢14,810m as against the GH¢14,400 recorded in 2014.
He indicated that since 2007, the company had been making losses partly due to forex losses.
Its turnover for 2015 stood at GH¢78.665m as against the GH¢76.845m in 2014, while operating profit dipped from GH¢4.666m in 2014 to GH¢2.524m in 2015.
In 2015, the company sold a total volume of 6,171 tonnes of products, a 20 per cent decrease on the 7,947 tonnes sold in 2014.
However, he added that the basic earnings per share sold for GH¢0.0626 in 2015 as against the GH¢0.0186 sold in 2014.
Aluworks Company Limited is to sign a $25m deal with a strategic investor, Vendata Resources, one of the world’s natural resources company soon to turn the fortunes of Aluworks around.