FIRST ALUMINIUM COMPANY TO ACHIEVE ISO - 9002

Though the Indian aluminium industry is about 60  years old, the  metal production in the country had remained low, necessitating large-scale imports. But the scenario has changed ever since geologists discovered in 1975 bauxite  deposits estimated at 1000 million tonnes along India's East Coast in the State of Orissa and Andhra Pradesh. 

India with its total bauxite deposit of 2900 million tonnes ranks fifth In the world, next only to Australia, Guinea, Brazil and Jamaica. The East Coast Bauxite discovery and strong demand for the metal led to the evolution of a framework for title setting up of an integrated bauxite-alumina-aluminium complex in Orissa to achieve a measure of self-reliance for the country. 

Thus on January 7, 1981 was born the Rs.2400 crore National Aluminium Company Limited (NALCO) following technical collaboration agreement with Aluminium Pechiney of France. The multi-unit, multi-locational company, Nalco came up with 24,00,000 tonnes per year bauxite mine, an alumina refinery to produce 8,00,000 tonnes of calcined alumina per year and 2,30,000 tonnes Smelter Plant. Since assured and uninterrupted supply of power is a must for production of aluminium, NALCO has also set up a 720 MW captive thermal power plant close to its Smelter.

The task of implementing the NALCO projects was enormous. Given the time frame for construction and commissioning the units, their multi-locations and multi-disciplines like Mining, Chemical Engineering, Power Generation and Metallurgy, it required a high degree of planning and systematic monitoring of implementation. In  1981, NALCO finalized the technical collaboration agreement with Aluminium Pechiney of France. This was followed by signing of an agreement to avail commercial Euro Dollar term loan of 980 million US dollar and start of project activities. Starting from the commissioning of mines in November 1985, all the units of the Projects followed on schedule, without  any cost overrun.

The year 1986-87 was a period of commissioning and trial production. The phase of transition from project implementation to commercial production was smooth largely due to . the advance ,action taken on sourcing of input materials, market planners, recruitment and training of people. Thus NALCO blazed a new trail in the history of India's aluminium industry as soon as it went into production.

NALCO is the first aluminium company to achieve ISO-9002 certification for all the four production units viz. Mines, Alumina, Smelter and Power plant. 

With the emergence of NALCO 011 the industrial scene, there has been a quantum jump in production. NALCO has spearheaded the production of Aluminium and alumina in the country. Greater availability has led to increased use and varied application of the metal. The country's production has risen from a level of 357,347 tonnes aluminium in 1988-89 to 640,000 tonnes in 2000-2001.

NALCO is the first Public Sector Company in the country to venture into international market in a big way. In fact, exports are at the centre of NALCO's commercial opera tion. The project itself has been de  signed to sell almost half of its Alumina production in international market. NALCO's metal has received London Metal Exchange rating of high purity. It’s Alumina also . Enjoys premium in world market on account of excellent quality and international standard bulk shipment facilities developed by the Company at Visakhapatnam.

Because of the consistent export performance the Government of India has accorded 'Star Trading House' status to NALCO, the first company in the public sector to earn this distinction. Since 50% of  NALCO's production is earmarked for overseas market, NALCO will continue to be a major player in international market. 

On metal front, production of aluminium alloys, billets and strips have been introduced for value added export of metal since the Company is an established brand name abroad, scope is being explored to add new products. All these measures will help NALCO to maintain its leadership and exports. 

Expansion and Growth

After establishing itself strongly as the industry leader, NALCO has gone ahead with its ambitious expansion programme involving an investment of Rs.3900 crores. 

NALCO has already completed expansion of its Mines capacity from  24 lakh tonnes to 48 lakh tonnes and expansion of alumina capacity from 8 lakh tonnes to 15.75 lakh tonnes.  Similarly, the Smelter capacity is  being expanded from 230,000 tonnes to 345,000 tonnes and Power plant capacity from 720 MW to 960 MW. 

Besides, the Company is implementing a number of downstream projects like special grade alumina, zeolite and gallium. The Company has acquired Rs 356 crore IAPL to produce 50,000 TPA rolled products. NALCO is also exploring possibilities of joint ventures in gulf countries.