The Chief Executive Officer of the Ghana Integrated Aluminium Development Corporation (GIADEC), Reindorf Twumasi Ankrah, has disclosed that the Volta Aluminium Company (VALCO) has struggled to sustain productivity and profitability since the government assumed full ownership of the company in 2008.

Speaking on Channel One  TV’s Face to Face on Tuesday, February 10, with Umaru Sanda Amadu, Mr. Twumasi Ankrah said VALCO was performing relatively better prior to the takeover but has since faced persistent operational and financial challenges.

“When you look at the data, and they say book no lie, when you look at the numbers, since the government took over VALCO 100% in 2008, it started having challenges. And anybody who wants to be fair to the facts will tell you that since 2008, we have had recurring challenges. Some of the challenges were national, like power and production challenges.

“VALCO was set up with a capacity of 200,000 metric tonnes of aluminium per year. From 2008, we started reducing, now we do just about 20% to 23% percent. Less than a quarter, which means we are doing just about 40,000 metric tonnes maximum a year. It was better than when we took over in 2008, and we have not been able to build on what we took over,” he said.

Mr. Twumasi Ankrah explained that VALCO’s declining output is compounded by limited operational capacity, noting that only one out of the company’s five pot lines is currently functioning, significantly increasing production costs while reducing output.

He further attributed the company’s struggles to obsolete infrastructure dating back to the 1960s, which has contributed to inefficiency, high operational costs, and sustained financial losses.

“All the installed port lines are obsolete because they’re from the 1960s. We’re in the era of modern, efficient technology. Because the port lines are obsolete, they’re inefficient, leading to higher production costs.

“Unfortunately, out of the five port lines, we have only one operating. We are paying more and producing less. We’re not able to generate more revenue, meet production targets, and VALCO has been repeatedly incurring losses year in year out, and the data is there,” he said.

He added that the company has consistently fallen short of its revenue and production targets over the years, further weakening its financial position.

Mr. Twumasi Ankrah also clarified that VALCO was not originally established as a state-owned enterprise, commending Ghana’s first President, Osagyefo Dr. Kwame Nkrumah, for successfully negotiating with an American firm to set up the aluminium smelter.