The largest foundry in the European Union changes hands. Aluminum Bahrain (Alba) confirmed, Tuesday June 2, the purchase of Aluminum Dunkerque for “approximately 2.2 billion dollars” (1.9 billion euros). The agreement was signed the day before, on the sidelines of the Choose France summit in Versailles. The group had expressed its interest in the company in early March, just as the conflict against Iran erupted.
Created by Pechiney in 1989, Aluminum Dunkerque is owned by the American investment fund American Industrial Partners, which wanted to disengage. But the French government nevertheless had a right of inspection, under the procedure for controlling foreign investments. On May 27, the European Commission had already given the green light to the operation, estimating that it would not reduce competition on the European market.
According to the agreement reached with Alba, Bpifrance will contribute 100 million euros to take 6% of the capital of Aluminum Dunkerque and will hold a seat on the board of directors. “With all that we say about economic sovereignty, about raw materials, we are happy that there is a view from the French State” on the board of directors of Aluminum Dunkerque via Bpifrance, Johan Vlietinck, CGT delegate of the company, rejoiced to AFP.
No impact on employment according to Alba
Owned by the Kingdom of Bahrain, Aluminum Bahrain, created in 1971, is one of the giants of the sector. On this small island in the Persian Gulf, it has one of the largest foundries in the world, which was also attacked in mid-March by Iranian missiles. It produced 1.62 million tonnes of aluminum last year, compared to 300,000 tonnes for Aluminum Dunkerque, and exported 27% of its volumes to Europe.
It was seeking to establish itself in the European Union, in particular to escape the carbon border adjustment mechanism (MACF), in force since the beginning of the year, which increases the price of aluminum imports on the old continent. In its press release, Alba explains that it wants to deploy “a long-term industrial strategy” in Dunkirk and assures that there will be no impact on employment. The northern site employs 750 people.
Despite a fairly turbulent history in recent years and fierce Asian competition, Aluminum Dunkerque is doing well, with a turnover of 800 million euros in 2024 and a net profit of 185.6 million euros. The company has had numerous owners since the purchase of Pechiney by the Canadian Alcan in 2003. In 2007, it was sold to the Australian mining group Rio Tinto, which had reduced activity and staff, then to the British GFG in 2021, which very quickly found itself in financial difficulties and left only bad memories on site.
The AIG fund, one of GFG’s creditors, had recovered the Dunkirk site, but very quickly announced that it would sell it once the factory was back on track. Last year, he mentioned a stock market listing, but the influx of potential buyers pushed the American to choose a private sale. In the ranks, there were already Alba, the Swiss Glencore, the Greek Metlen, but also Rio Tinto.
The advantage of carbon-free electricity
Today, Aluminum Dunkerque, which is benefiting greatly from the rise in aluminum prices, has many advantages, firstly with solid customers. The company is one of Airbus’ historic suppliers, whose order book is bursting at the seams, and it also supplies numerous defense manufacturers, who are also bursting with activity. Demand continues to increase, particularly for recycled aluminum, which allowed it to open an eighth furnace last year.
In 2025, Aluminum Dunkerque also concluded an agreement with EDF on an electricity price for ten years, for 75% of its supplies. An essential point for securing costs, while energy represents a third of costs. The site is, in fact, the largest consumer of electricity in France (1%), alone absorbing half of the production of a reactor at the Gravelines nuclear power plant, a few kilometers away. Carbon-free electricity is one of the determining factors that pushed Alba to submit a takeover offer, according to its managers.
