Emirates Global Aluminum, the largest aluminum producer in the Persian Gulf, has declared force majeure on some contracts, Bloomberg reports.
Force majeure or "force majeure" is a legal mechanism that relieves a debtor of liability for failure to fulfill contractual obligations due to unforeseen and unpreventable events
The company took this measure to stop at least some of the supplies after one of its smelters was disabled in an Iranian attack.
The smelter is among the largest in the world, producing 1.6 million tons of aluminum by 2025, the media outlet said. The Middle East produces about 9 percent of the world's aluminum, with EGA and other companies playing a key role in supplying manufacturers in Europe, Asia and the United States.
Amid the war and restrictions on traffic through the Strait of Hormuz, the region's largest producers are facing shortages of critical resources, Bloomberg reported. The publication said the industry expects cascading production cuts if the strait is not reopened quickly.
The Al Tawila smelter in Abu Dhabi, which was hit by an Iranian attack, will be able to resume aluminum production in about 12 months, EGA said earlier.
The plant was attacked on March 28, hit by missiles and drones. All employees were evacuated from the smelter, foundry, power plant, alumina refinery, and waste processing plant, and operations were suspended.