Alfeco Group has acquired Hulamin's Gauteng aluminium extrusions business in Olifantsfontein, Midrand. The extrusion assets, now part of Alfeco's new aluminium division, have been renamed Veer Aluminium.
This acquisition signals further growth and commodity diversification in Alfeco's ferrous and nonferrous metals portfolio. Veer is recommissioning the operation and embarking on a significant expansion project, incorporating a fully integrated model based on recycling aluminium scrap. South Africa is expected to experience a sharp growth in recycled aluminium due to competitive cost economics, wide applications, environmental benefits, and lower capital intensity.
The first phase of re-establishing the extrusion operation is expected to come on line at the end of the second quarter. The second phase involves expanding the plant to include scrap processing, melting, casting, and rolling, requiring significant capital investment.