Hindalco Suspends Extruded Aluminium Production Amid Iran Tensions

Hindalco Industries Halts Extruded Aluminium Output Due to Gas Shortage

Hindalco Industries, a metals producer owned by the Aditya Birla Group, has temporarily halted output of extruded aluminium, a value-added aluminium product, due to a gas shortage in the wake of supply disruptions in the Middle East.

According to a company notice, Hindalco Industries declared force majeure to all of its extruded aluminium customers on March 11, citing a force majeure declaration by certain gas suppliers. However, the company has stated that this was a "routine business intimation regarding a potential supply disruption in a segment of the extrusions business."

The aluminium extrusions segment constitutes a small portion of Hindalco Industries' production capacity, representing less than 0.1% of its overall operations. The company assured that all other downstream and upstream operations, including primary aluminium, continue to operate normally, supported by captive power and alternate energy arrangements.

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Hindalco Industries serves various industries, including construction, electric vehicles, electronics, and solar panels, which rely on extruded aluminium. The gas shortage in India is attributed to the U.S.-Israeli war on Iran, resulting in the government cutting supplies for industries to shield households from any shortage of cooking gas.

The company has taken measures to mitigate the impact of the force majeure event and continues to operate its aluminium smelters normally, according to sources.