How dedicated aluminium clusters could be game changers
aluminiumsheet > 02-23-2018, 02:02 AM
Nalco, in collaboration with the Odisha government-owned Industrial Infrastructure Development Corporation (Idco), is developing an aluminium downstream park at Angul in the eastern region. The facility is spread over 240 acres and in the project, both Nalco and Idco are joint equity partners. The park is strategically located in the vicinity of Nalco’s aluminium smelting complex at Angul. The park is modelled on Sohar Aluminium’s cluster in Oman where molten aluminium is supplied to the downstream units. This saves on logistical costs and also ensures continuous raw material supplies. In India, this is the first of its kind project, whereby molten aluminium would be sourced directly to feed the downstream units at the park. But, both Nalco and Idco- the equity holders in the aluminium park have gone beyond the commitment of raw material supply.
Nalco has committed a supply of at least 50,000 tonnes of molten aluminium every year to the downstream units who set up shop in the park. The supply can expand to 100,000 tonnes every year depending on the demand from the units. Nalco is also providing a pricing discount of Rs 5000 per tonne on aluminium ingots and Rs 4000 a tonne on molten metal. Leaving that aside, Nalco is lending its brand name to the products to be manufactured by the downstream industries. Land price for the units has also been slashed by 20 per cent. With such an array of incentives on offer, the downstream units can save up to Rs 10,000 per tonne. This cluster model has potentially positioned this cluster as amongst the most globally competitive aluminium parks in the world.
The Angul aluminium park is built with a cost of Rs 180 crore (or $28 million) on infrastructure. The aluminium park would reflect a complete industrial state-of-the-art entity, fully equipped with logistics infrastructure facility, an exclusive training centre, a park administration and a display & trade services facility. The park would also contain an Aluminium Product Evaluation Centre (APEC) furnished with a fully-fledged tool room, testing, simulation and evaluation facilities, processing hall and prototype development facility to foster innovation and deliver excellence in terms of quality.
Learning from the Nalco example, Vedanta has planned to develop a similar downstream aluminium park. The company has identified 240 acres of land around the site of its aluminium smelter at Jharsuguda in Odisha’s western belt. Expected to house more than 100 downstream units, the proposed aluminium park has the potential to attract investments worth Rs 1000 crore. This state-of-the-art plug-and-produce aluminium park will be set up across 240 acres of land, providing an exclusive ecosystem for industries dependent on as well as manufacturing aluminium conductors, extrusions, castings, foils, powder and paste. The aluminium park will facilitate easy transport of aluminium in liquid form, resulting in substantial cost savings that will be a game-changer for the downstream industries. With a holistic ecosystem in place, the park is expected to attract a large number of aluminium/aluminium based industries generating huge revenues and employment in the region.