Aluminerie Alouette, an aluminium manufacturer partially owned by Rio Tinto, is reportedly planning a significant investment of up to $C1.5 billion ($1.7 billion) to modernise its production facilities in northern Quebec. Sources familiar with the matter indicate that the company has also secured a new electricity supply agreement with Hydro-Quebec, the power utility owned by the Quebec government. Aluminerie Alouette produces aluminium products. Rio Tinto is a major shareholder in the company.
A spokesperson for Aluminerie Alouette declined to provide specific details regarding the investment. However, they noted that an official announcement is scheduled for Friday. This planned investment is expected to be a boost for the industry, which is currently facing challenges due to the trade policies of US President Donald Trump.
The US has imposed a 50 per cent tariff on imports of foreign aluminium, impacting US businesses that rely on the metal. Constellation Brands, a beer and alcohol producer, stated on Wednesday that it anticipates these tariffs will cost the company approximately $US20 million for the remainder of its fiscal year.
Canada is the largest exporter of aluminium to the United States, which lacks sufficient domestic smelting capacity to meet its own demand. The modernisation of Aluminerie Alouette’s facilities will likely enhance Canada’s position as a key supplier in the North American market.
