Mytilineos — Aluminium Cycle

Mytilineos is Greece's largest industrial company — a uniquely diversified conglomerate combining aluminium smelting, renewable energy development and EPC services. Its LARCO aluminium smelter makes it one of the few integrated bauxite-to-aluminium producers in Europe.

LME Aluminium: The Core Price Driver

Mytilineos's LARCO smelter produces approximately 180,000 tonnes per year of primary aluminium. The LME aluminium price directly determines smelter profitability — at $1,700/t margins are thin; at $2,500–3,000/t profitability is substantial. The 2021–2022 European energy crisis shut many competing smelters, giving Mytilineos a competitive advantage as one of the few remaining large-scale European producers.

Energy as Both Risk and Advantage

Smelting uses roughly 14–16 MWh per tonne of aluminium. European electricity price spikes in 2021–2022 threatened smelter economics. However, Mytilineos's captive power plant and long-term energy contracts partially insulated it — allowing continued production while peers curtailed. Energy management capability is now a key differentiator.

Renewables: Greece's Green Energy Developer

Mytilineos has become one of Greece's leading renewable energy developers — building wind and solar projects for domestic and international clients. This segment provides revenue diversification and captures the EU's substantial clean energy investment cycle.

EPC: International Expansion

The EPC division executes energy and infrastructure projects across Europe, Africa and the Middle East. This high-margin, project-based business contributes significantly to earnings when aluminium is weak and the order book is full.

Key Risks

European electricity prices remain the primary operational risk for the smelter. LME aluminium competition from Chinese overproduction continues to cap price recovery potential. Greece's political and regulatory environment adds residual sovereign risk.

Cycle Performance Summary