Cameroonian Aluminum Company (Alucam) is merging with Cameroon Aluminum Transport (Socatral), the companies decided on June 30.
According to media reports, the legalities of the merger are being finalized by the shareholders. The merged entity will be given a new name, which will be made public in the near future, said Cathy Mohma, a spokesperson for Alucam. She added that the move was a merger by absorption.
Both the companies work in the same facility, and their conflation will consolidate production costs. Alucam produces around 100,000mt of primary aluminum per year, of which Socatral uses one-third to make corrugated sheets. The merged entity predicts annual output of 360,000mt.
The initiative comes as a response to Alucam’s sustained losses over the past few years and the deficit in aluminum sheet supply in the domestic market.