Hindalco Industries, a major Indian company owned by the Aditya Birla Group, has issued a notice to halt production of extruded aluminium products due to a gas supply shortage. The situation of gas shortage has emerged because of the United States- Israel war with Iran, which has significantly affected the imports of gas.
The Aditya Birla Group has announced a force majeure to its extruded aluminium products customers, which is a situation in which the company cannot meet its contractual obligations due to conditions beyond its control, such as natural disasters and war. However, the company continues to operate normally as the extruded aluminium was just a part of the business, not the whole business. They said, “All other downstream and upstream operations, including primary aluminium, continue to operate normally, supported by captive power and alternate energy arrangements”.
Extruded aluminium production accounts for a small proportion of Hindalco’s operations, and the company stated that the potential impact is presently limited to less than 0.1% of its overall operations. The product is used in construction, electronics, electric vehicles, and solar panels.
Currently, India is amid a gas crisis, which has arisen due to the war in the Middle East. To address this situation, the Indian government is primarily focusing on household gas by cutting industrial gas supply.
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Hindalco has taken all necessary steps to effectively manage the gas supply shortage. Because of this, the company declared force majeure, ensuring that its aluminium smelters remain operational.
