The aluminium smelting industry faces operational challenges as Century Aluminum announces a halt in production on one of its potlines at the Grundartangi smelter in Iceland due to an electrical equipment failure.
Norðurál Grundartangi ehf, a subsidiary of Century Aluminum, confirmed the temporary stop affecting one of its two potlines. Fortunately, no injuries have been reported. Additionally, the company secured an extension on its power agreement to ensure a reliable power supply for its Mt. Holly smelter up to 2031.
This incident has resulted in a significant reduction in production capacity, with output dropping by approximately two-thirds at the affected potline. The other potline remains operational, and the company is currently assessing the impact, as well as determining the timeline for acquiring replacement equipment to resume full production. A detailed update is planned for the upcoming quarterly earnings conference call on November 6.
Century Aluminum is optimistic that losses incurred from this interruption will be compensated through its property and business interruption insurance policies. The company is actively collaborating with impacted customers and suppliers to mitigate disruptions.
In parallel, Century has strengthened its commitment to the US market by extending its power agreement with South Carolina Public Service Authority (Santee Cooper), which is vital for enhancing its Mt. Holly smelting capacity. This extension is part of a broader strategy to revitalize idle production capabilities, boosting output by 50,000 tons and contributing to a projected 10% increase in overall US aluminium production.
The company’s initiatives aim to foster job creation, with over 100 new positions anticipated, enabling the plant to achieve full production levels by early summer 2026, levels not seen since 2015. This revitalization is bolstered by supportive federal policies for the domestic aluminium sector, particularly under Section 232 tariffs.
- Contractors and plant engineers should prepare for potential delays in raw material supply due to production halts and the assessment of damages.
- Understand the implications of insurance coverage for equipment failures, as this can impact project budgets and timelines.
- Stay informed about power supply agreements and their potential effects on project planning and resource allocation.
Source: https://www.aluminium-journal.com/production-stop-of-one-potline
