Doha [Qatar], June 15: Qatar Aluminium Manufacturing Company (Qamco), which owns a 50 percent stake in Qatar Aluminium Company (Qatalum), has announced the termination of the marketing and offtake arrangements with Hydro Aluminium, which had been acting as Qatalum's marketing agent. The termination has been carried out in accordance with the terms of the relevant agreements governing the partnership.
In a statement issued to the market, Qamco clarified that the marketing of Qatalum's aluminium production will now be conducted in accordance with the provisions of the joint venture agreement. The company emphasised that it does not expect the change in arrangements to have any material adverse impact on Qatalum's financial position, operational performance, or business continuity.
Following the termination, Qatalum will temporarily assume direct responsibility for the marketing and sale of its aluminium products. The company noted that this provisional arrangement has been put in place to ensure uninterrupted service to customers and the continued efficient marketing of Qatalum's production while longer-term arrangements are considered.
Qamco stated that it remains actively engaged with its joint venture partner to facilitate an orderly transition and to address any issues arising from the change in marketing and offtake arrangements. The company reiterated its commitment to maintaining operational stability and ensuring that all activities continue in accordance with applicable agreements and established governance frameworks.
The company further stressed that safeguarding shareholder interests remains a key priority. "Qamco is committed to supporting a smooth transition, ensuring continuity of operations, while always complying with the terms of all relevant agreements and protecting the interests of, and maximizing value for, its shareholders," the statement said.
The announcement follows public reports regarding the termination of the marketing and offtake agreement, which prompted Qamco to provide clarification to investors and stakeholders. According to the company, Hydro Aluminium and its affiliates are subject to confidentiality obligations concerning such information, and any public disclosure is required to be coordinated with the other shareholder partner.
Qamco noted that Hydro had previously confirmed its position that no market announcement was required in relation to the matter. However, following the emergence of media reports, the company deemed it necessary to issue a formal statement to ensure transparency and provide accurate information to the market.
The company revealed that it is currently investigating the circumstances surrounding the disclosure of the information. While the review is ongoing, Qamco sought to clarify that references made in communications by Hydro or its affiliated entities regarding potential financial or operational impacts should be interpreted as relating to Hydro Aluminium in its role as marketing agent and not to Qatalum or its shareholders.
Market observers note that Qatalum remains one of the world's leading aluminium producers, with a strong reputation for operational efficiency, product quality, and reliable supply to global customers. Industry analysts suggest that the transfer of marketing responsibilities to Qatalum is unlikely to affect production levels or customer commitments, given the company's established operational capabilities and extensive market presence.
Qamco reaffirmed that it will continue to monitor developments closely and will provide updates to shareholders and the market as appropriate. The company reiterated its confidence in Qatalum's ability to manage the transition effectively while maintaining its operational and financial performance.
The development marks a significant change in the commercial arrangements governing the marketing of Qatalum's aluminium products, but Qamco maintains that the transition is being managed in a structured and collaborative manner, with the objective of preserving business continuity and long-term value creation for all stakeholders.
Source: Qatar Tribune
