Qatari re-Qamco confirms cancellation of aluminum marketing deal with Hydro

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- Qatar Aluminum Manufacturing Company (QAMCO) confirmed on Sunday that it had cancelled the role of its partner Norsk Hydro as the marketing agent for their joint venture, Qatar Aluminum Company (Qatlum), without giving a reason.

Qamco said in a statement, "Qatlum's production will now be marketed in accordance with the terms of the joint venture agreement."

She added, "Following this termination, Qatlum will temporarily assume responsibility for marketing and selling its aluminum products. Qamco continues to cooperate constructively with its partner to ensure an orderly transition and address the issues arising from this change in arrangements."

  • Reuters reported on Friday that Qatloum had cancelled the trade agreement under which the plant supplied Hydro with minerals, and Hydro issued a force majeure notice to customers.

  • Qamco stated in its announcement that it does not expect "this termination to have a material adverse impact on Qatalum's financial or operational performance." Qatalum has a production capacity of 648,000 tons per year and has been operating at only 60 percent of its capacity since March due to the repercussions of the Iran-Iraq War.

  • The statement said that Qamco "investigates the circumstances surrounding the disclosure" by Hydro and said there was a presumed obligation of confidentiality.

  • The statement said, "The company clarifies that Hydro and its subsidiaries are obligated to maintain the confidentiality of such information, and that any public disclosure must be made in coordination with the other partner in the joint venture."

  • Qatlum was established in 2006 as a 50/50 joint venture between Hydro and Qatar Energy. Qatar Energy owns 51 percent of Qatlum.