The Volta Aluminium Company (VALCO) is experiencing a turnaround after years of underperformance, according to its Chief Executive Officer, Dr Robert Makila Sambian.
Speaking in an interview on Citi FM, Dr Sambian credited the company’s improving fortunes to increased government support and better internal management practices.
The state-owned aluminium producer, established shortly after Ghana’s independence, has faced numerous operational difficulties over the years. Power supply inconsistencies severely impacted production for nearly three decades following its establishment, leaving the facility’s potlines compromised.
Currently, three of the company’s potlines remain non-operational, having been stripped for parts to keep two others running. Even these functioning potlines are not operating at full strength.
“As we speak today, three potlines are idle. They have been cannibalised to support the existing two potlines, and even the two potlines are not fully populated,” Dr Sambian stated.
The CEO revealed that VALCO’s smelter had been running at just 23 per cent capacity—the lowest rate worldwide for such facilities.
Built with the ability to produce 200,000 tonnes of primary aluminium annually, the plant’s potlines were designed to house 200 cells. At present, only 114 are in use, though recent interventions have begun to change this situation.
“With the interventions we have made to turn around the place, we have been able to increase the number to 124 as we speak,” he said.
Management aims to push capacity utilization to 40 per cent, which Dr Sambian said would boost production levels and improve the company’s financial position.
“The significance of this will be to improve volumes, improve efficiency and turn operations into a profitable operation, or at least break even in the worst-case scenario,” the CEO stated.
VALCO now operates under the Ministry of Lands and Natural Resources and has been identified by the President as a key vehicle for employment generation.
“The Minister, Armah-Kofi Buah, has been here and toured the plant. There is government commitment to seeing VALCO fully turned into a profit-making venture, and the Board has been very supportive in this drive,” Dr Sambian said.
The company has introduced value-addition production lines intended to optimize operations and cut unnecessary expenses, according to Dr Sambian.
At full capacity, the facility is projected to generate approximately 5,000 jobs, representing a substantial contribution to Ghana’s economy.