Japanese trading house Mitsui has raised its stake in Nippon Amazon Aluminium (NAAC) to increase its offtake of low-carbon aluminum ingots produced in Brazil, as it aims to enhance its decarbonisation and metal businesses.
Mitsui increased its shareholding in NAAC, which has a stake in Brazilian aluminum refiner Aluminio Brasileiro (Albras), to 46pc from the current 21pc for an undisclosed sum. The increased stake will boost Mitsui's offtake of Albras' aluminum ingots to 140,000 t/yr from the current 80,000 t/yr.
It plans to sell the increased offtake mainly to Japanese consumers. The firm has delivered Albras' low-carbon aluminum ingots mainly to Japanese users.
NAAC has a 49pc stake in Albras, which manufactures 450,000 t/yr of aluminum ingots. It cuts carbon dioxide emissions during the production process by using renewable power.
Mitsui expects increased demand for light, recyclable aluminum produced with renewable energy with an accelerating decarbonisation trend and aluminum requirements for various goods like vehicles, aircraft, construction materials, cans and electric wire. It also predicts a continued tightness in supplies of low-carbon aluminum.
Mitsui also invested in India-based scrap metals trader and manufacturer MTC Group to take advantage of rising metal demand in India.
