“The production of aluminum conductors has grown significantly”
CEO of Alumtek in an Interview with FelezatOnline:

“The production of aluminum conductors has grown significantly”

Moves and changes in management are natural parts of any company. This is inevitable and acceptable, but managers in production businesses should be replaced with more efficient people who can lead the company towards greater progress with their modern technical knowledge. That is what has happened in Alumtek and the company’s output has evidently grown after the management change. We have interviewed Mahdi Sohrabi, CEO of Alumtek, for this Insider Talk to learn more about the recent changes in the company and its future plans.

Have the company’s operations changed this year?

With a history of over half a century, Alumtek is the oldest producer of aluminum products for the power industry. In the 1380s, the company was the only producer for the power industry. Alumtek has had innovations in many products over its lifetime; a lot of the products that are now commonly produced were first introduced by Alumtek.

The company is the largest producer of ACSR and alloys with an annual capacity of 35,000 tonnes. We can also produce wirerod as raw material for other companies.

As a producer of aluminum products, Alumtek is among the first companies on the stock exchange.

Have changes in the management affected the company’s output?

Due to changes in management and shareholders over the years as well as fluctuations in the price of aluminum, the company was cut away from its target market and went into a downward trend.

On the bright side, the structure of shareholders changed. The National Iranian Investment Company designated major shareholders and administrative shareholders, who are running and governing the company; as a result, the company has a unified board of directors. The feedback in downstream businesses has resulted in better decisions and certain support for shareholders.

How have the company’s plans and goals changed as a result?

We are planning to participate in all tender offers, evaluation and quality calls, and inquiries in order to make up for the loss of brand reputation over the years.

We have made plans and taken measures to improve the quality of our products to reclaim our status as a major supplier to the power industry.

Although Alumtek suffered significant damages due to the loss of its market share, it is outperforming other companies in the business in terms of quality, product control, and the technical knowledge of its staff. We have a lot of plans and we are going to make up for what we have lost. In fact, we are going to raise the company back to its position as the first and largest producers of power conductors.

Along with our high-capacity and coated conductors traditionally produced by the company, we are also working on a range of new alloy products that are the new generation of aluminum conductors in the power industry.

Now that Alumrod no longer offers its products exclusively to Aumtek, do you think your raw material flow will be disrupted?

Since domestic producers of wires and cables are operating at 20% capacity due to supply surplus, we want Alumrod to take advantage of its existing capability and technical knowledge to produce new products so that it can extend its market to other companies beyond Alumtek; this can bring added value to Alumtek, the major shareholder of Alumrod. Moreover, both companies will expand the range of their products.

This will lead to more diverse products and better capacity utilization for both Alumrod and Alumtek; both companies will enjoy greater added value owing to the production of different grades of aluminum alloys.

What are the pros and cons of replacing copper wires and cables with aluminum ones?

Copper is obviously better than aluminum in terms of electrical conductivity, but problems such as high copper prices and cable thefts are hurting copper conductors. As a result, companies are shifting to aluminum conductors.

The production of aluminum conductors is easier than copper ones. There are many producers, and projects using aluminum wires and cables are not as costly as those using copper conductors. Moreover, the issue of theft is largely removed.

What are your plans for ramping up Alumtek’s nameplate capacity?

The first step is to win back Alumtek’s lost reputation. The company’s activity is mostly summed up in its participation in tender offers and sales of wirerod, but the previous management had reduced the contribution of marketing, leading to decreased demand for Alumtek products.

The company did not participate in tender offers for years; many of our customers (the oil and gas and the power industries) had concluded that the company was involved in the state-private transition and had run into serious problems like some other companies. Thus, Alumtek’s orders had dropped.

We are planning to participate in tender offers, especially those that will guarantee the company’s interests.

The only reason that held us back from ramping up production despite massive orders was the insufficient supply of raw materials. We need steel and aluminum raw materials; our production declined because we didn’t get a certain type of steel wires that we needed.

The company is required to deliver 1.5 thousand tonnes of wires and cables by the end of the year, which means we need to produce 500 tonnes on average per month.

Alumtek’s output of aluminum products has multiplied this year; it was 1.2 thousand tonnes last year, but this year it is 2.5 thousand tonnes so far and we expect it to reach 4,000 tonnes. That is a great milestone given that the company has been out of production and away from tender offers for five years.

As Alumtek’s marketing has been ramped up, we are expecting to see improvements in the brand’s loss of face so that we can see a major boost in our revenues in line with our plans.

Despite the growth in production over the recent months, there has been decreased production in some areas. Are there any reasons for lower production of profiles and busbars?

Conductors are the company’s main products and Alumtek is the largest producer of conductors. The main reason why the production of conductors has not increased much over these months is that we have had problems procuring steel raw materials. We buy most of the steel wirerod that we need to produce conductors from Zanjan Wire; it produces steel wires 1-3 mm thick. There are only four such companies in Iran, but Zanjan Wire controls 90% of the market, with other smaller companies taking up the remaining 10%.

Recently, Zanjan Wire has received a lot of orders and also exports some of its products; thus, we have had problems getting raw materials.

We are not producing aluminum profiles currently, but we have received new orders for busbars in certain sizes and sections, which have much higher added value. We had to implement basic changes in our press machines in order to produce 250mm and 300mm busbars. We needed two months to redesign different parts of the machine, during which we halted production.

Have done anything regarding exports? Do you have any plans?

The company’s output has never exceeded 2,000 tonnes, but we are planning to ramp up production; primarily, we are going to reclaim our domestic market share.

The policy defined for Alumtek is to move toward the production of alloy conductors, because they don’t need steel wires and create much higher added value than steel-reinforced conductors. We are also planning to participate in tender offers to expand our market share.

We have equipment for producing insulated conductors, but we are going to add new equipment so that we can secure our market.

Iralco is taking measures to start selling its products on credit; is Alumtek considering a similar strategy?

Based on the contract with the customer, we will certainly need to offer credit options, but given that Alumtek has a history of defaulting on its financial obligations, we are facing restrictions for opening an LC account. We are dealing with these issues and we hope to be able to buy on credit from Iralco next month.

We have also started selling our products on credit, with two five-billion-toman pilot contracts that had good results for the company.

We will definitely have credit sales of products with good added value. For high volumes, however, we will need to work on an LC-to-LC basis; we will sell our products on credit, which we will transfer to Iralco to buy aluminum ingots.

The important thing is that we should immediately buy as much raw materials as we sell our products; aluminum prices are very volatile and can spike in a week’s time. To prevent losses, we buy raw materials immediately after selling our products.

مشاهده مطلب
نظر شما
  • 0
  • 0
  • 0
  •  
  •  
فلزات و مواد- فارسی
گل گهر
عضویت در خبرنامه
  • نام
  • پست الکترونیک
فولاد هرمزگان
خرید اشتراک ماهنامه اشتراک
دانلود نرم افزار

دانلود اپلیکیشن موبایل اخبار فلزات

دانلود از بازار دانلود از گوگل پلی
یکصد و بیست و پنجمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و پنجمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و چهارمین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 78 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

یکصد و بیست و چهارمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و چهارمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و چهارمین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 82 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

یکصد و بیست و سومین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و سومین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و سومین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 78 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

یکصد و بیست و دومین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و دومین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و دومین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 74 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

یکصد و بیست و یکمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و یکمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیست و یکمین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 76 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

یکصد و بیستمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیستمین هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد

یکصد و بیستمین شماره هفته‌نامه الکترونیکی پایگاه خبری، تحلیلی فلزات آنلاین منتشر شد.هفته‌نامه فلزات آنلاین این هفته در 78 صفحه منتشر شد. متن هفته‌نامه در پیوست این مطلب قابل مشاهده است.

کلیه حقوق این سایت متعلق به پایگاه خبری و تحلیلی فلزات آنلاین بوده و استفاده از مطالب با ذکر منبع آزاد است.

طراحی و تولید: