Aluminium Bahrain (Alba), the world’s largest aluminium smelter at a single site, and AIP VII Europe Sarl., a wholly-owned subsidiary of AIP Fund VII, managed by American Industrial Partners, today (March 2) announced that they have entered into an exclusive agreement under which Alba will acquire 100% of Aluminium Dunkerque, the European Union’s largest primary aluminium smelter. 

The proposed transaction marks an important new chapter for Aluminium Dunkerque and secures a long-term industrial owner committed to its continued development in France and Europe.

Based in Loon-Plage in the Dunkerque region of France, Aluminum Dunkerque produces 300,000 tonnes of aluminium per year. With advanced automation, integrated production capabilities, and a robust foundation of skilled talent, Aluminium Dunkerque is well positioned to benefit from Europe’s growing demand for sustainably produced aluminium.

Under AIP’s ownership, and thanks to the leadership of an experienced management team and the commitment of its highly skilled employees, Aluminium Dunkerque has transformed its operational reliability and energy efficiency, strengthened its financial performance, secured long-term electricity supply agreements with EDF and others, invested in productivity and modernisation, and reinforced its position as one of the lowest-carbon primary aluminum producers in Europe.

Today, Aluminium Dunkerque stands as a strong, competitive, and future-ready industrial platform, serving strategic sectors including automotive, aerospace, defense, construction, and packaging, in France and throughout Europe.

The proposed transaction would bring Alba and Aluminium Dunkerque together to form a geographically diversified industrial group with an operational footprint across regions, expanding both companies’ global customer base.

As per the deal, Alba intends to pursue a long-term industrial strategy anchored in France and led locally, focused on operational stability, continued investment and sustainable innovation.

The aluminium giant brings decades of experience operating large-scale smelting facilities, deep technical expertise, and a disciplined capital approach, backed by a stable long-term shareholder base. 

In acquiring Aluminium Dunkerque, Alba commits to ensuring the continuity of its existing operations, preserving employment and critical industrial capabilities, reinforcing low-carbon production, and supporting France’s and Europe’s energy transition and industrial sovereignty objectives. Alba further commits to maintaining Aluminium Dunkerque’s established standards of safety, reliability and operational excellence.

Aluminium Dunkerque’s strategic European location, advanced industrial capabilities, and attractive energy profile complements Alba’s scale and global reach. 

Together, the companies’ combined footprint across Europe and the Gulf Cooperation Council (GCC) region strengthen supply chain resilience and position the group to meet growing global demand driven by electrification, sustainable construction and the global energy transition.

On the deal, Khalid Al Rumaihi, Chairman of Alba, said: "Building on Alba’s position as a global supplier serving five continents, this transaction represents a bold and forward-looking step in our strategic roadmap to build a globally connected, low-carbon aluminium platform with operational strongholds in the GCC and Europe."

"By combining Alba’s and Aluminium Dunkerque’s established strengths, we intend to create a new industrial powerhouse for cross-regional collaboration rooted in shared values and a commitment to innovation and responsibility," he stated.  

As global aluminium demand accelerates, this partnership will enable Alba and Aluminium Dunkerque to build an integrated platform that will capture compelling market opportunities while contributing to Europe’s industrial resilience and the global decarbonisation agenda.”

Alba CEO Ali Al Baqali said: "Our commitment is long-term. We will ensure operational continuity, support employees and expand low-carbon production capabilities to advance Aluminium Dunkerque’s next phase of development in full alignment with France’s industrial and energy priorities."

Zac Carson, Partner at AIP, said: "Following a rigorous and competitive process, we are confident that Alba – one of the world’s leading and most technologically advanced primary aluminium producers – is the right long-term owner to build on the transformation achieved over the past five years and to further strengthen Aluminium Dunkerque’s strategic role within Europe’s industrial value chains."

"Alba maintains a singular focus on aluminium smelting, has excellent access to critical alumina, and has the strong balance sheet and cash flows required to sustain growth in the decades ahead," stated Carson.

Guillaume de Goÿs, CEO & President of Aluminium Dunkerque, said: "Over the past five years, American Industrial Partners has been a supportive partner to Aluminium Dunkerque’s management as we re-established our company as a top industrial performer. Today, we look forward to welcoming Alba as our new long-term industrial owner. As one of the world’s leading primary aluminium producers, Alba brings deep technical expertise, operational excellence, and a clear commitment to low-carbon aluminium production that aligns perfectly with our ambitions."

"This new chapter will provide us with many new opportunities, along with the financial and technical resources to continue investing, innovating and reinforcing Aluminium Dunkerque’s role in France and Europe," he added.

Rothschild & Co, one of the world's largest independent financial advisory groups, had acted as the sole financial advisor to Alba on the transaction.-TradeArabia News Service