Qatar’s Qamco ends marketing arrangements for Qatalum production with Norwegian Hydro economy

Qatar Aluminum Manufacturing Company (QAMCO), which owns a 50% stake in Qatar Aluminum Company (Qatalum), announced the termination of marketing and production arrangements with the Norwegian company Hydro Aluminum AS, as the marketing agent for Qatalum, in accordance with the terms of the relevant agreements.

The company said in a statement on the Qatar Stock Exchange website that Qatalum’s production will be marketed in the future in accordance with the terms of the joint venture agreement, stressing that it does not expect this termination to have a “material negative impact on Qatalum’s financial or operational performance.”

She added that Qatalum will temporarily assume responsibility for marketing and selling its aluminum products following the termination of the agreement, noting that Qamco continues to cooperate constructively with its partner to ensure an orderly transition and address issues arising from this change in arrangements, while always adhering to the terms of all relevant agreements and protecting the interests of shareholders.

Qamco explained that it was aware of the public reports circulating regarding the termination of the marketing agreement and the receipt of production, which necessitated the issuance of this announcement.

Confidentiality of information

Qamco said that Hydro and its subsidiaries are obligated to maintain the confidentiality of this information, and that any public disclosure must be made in coordination with the other partner in the joint project, adding that Hydro had confirmed its position that there was no need to issue a disclosure to the market.

In this context, “Qamco” stated that it is currently investigating the circumstances surrounding the disclosure, stressing that any references contained in the disclosures of “Hydro” or its subsidiaries regarding the financial or operational implications “must be understood as relating to “Hydro Aluminum AS” as the marketing agent, and does not extend to “Qatloum” or its shareholders.”

Reuters reported on Friday that Qatalum had canceled the commercial agreement under which it was supplying aluminum to Hydro, while the Norwegian company issued a force majeure notice to its customers.

Qatar Aluminum Manufacturing Company (QAMCO), a Qatari public shareholding company, was established in 2018, and the company’s main activity is to act as a holding company.

QAMCO confirmed that it will disclose any developments related to the aforementioned issues when necessary.

Qatalum was established in 2006 and is a 50-50 joint venture between Hydro and Qatar Energy, and Qatar Energy owns 51% of Qamco.

The production capacity of Qatalum is 648 thousand tons annually and is currently operating at only 60% of its capacity since March due to the consequences of the outbreak of the Israeli-American war on Iran.