Aluminium Bahrain (Alba) has entered exclusive negotiations to acquire Aluminium Dunkerque, Europe’s largest primary aluminum smelter, from American Industrial Partners (AIP). The deal, announced on March 2, 2026, positions Alba for significant expansion within the European market.
The proposed transaction marks a turning point for Aluminium Dunkerque, which has seen a dramatic financial turnaround since being acquired by AIP in 2021. At that time, the smelter, located in Loon-Plage in the Dunkerque region of France, reported a net profit of just €48 million. By 2024, though, profits had surged to €186 million, with annual revenue reaching €800 million and production totaling 300,000 tonnes of aluminum alloys.
According to sources familiar with the matter, AIP had signaled its intention to sell the asset after successfully improving its operational efficiency and financial performance. “They always said they bought the company to get it back on its feet and sell it,” Johan Vlietinck, a CGT union representative at the company, told Le Monde in December 2025. “Like any investment fund, they are looking for a quick financial gain, not a long-term industrial commitment.”
Alba, founded in Bahrain in 1968, is currently the world’s largest aluminum smelter at a single site, with a production capacity exceeding 1.62 million tonnes per year. Kim Marvin, Managing Partner at AIP, stated, “Alba will be an excellent owner. Their specialty is aluminum. They don’t have other activities. And they operate the largest smelter in the world.”
The acquisition, valued at €1.17 billion according to Inforcapital, reflects Alba’s strategic push into low-carbon metal production as demand for sustainable materials increases. Aluminium Dunkerque has invested heavily in automation, energy efficiency, and long-term electricity supply agreements, making it one of the lowest-carbon primary aluminum producers in Europe. This positions the smelter favorably as the European Union implements stricter carbon regulations, including the Carbon Border Adjustment Mechanism (CBAM).
The deal also comes as the global aluminum market is projected to grow at a compound annual growth rate of 3.5% through 2030, driven by demand from the automotive, aerospace, defense, construction, and packaging sectors. Bpifrance, France’s investment bank, is reportedly backing the transaction, underscoring the government’s commitment to maintaining industrial continuity in the region.
