With prices at all-time lows at the beginning of 1994, the only primary aluminum producer in South Africa - Alusaf - is considering building a plant from scratch the largest in the world. Use of estimates in this case, students can assess the relative cost position of the plant in the context of data on the costs of other plants are presented in Table accompanying "the aluminum industry in 1994." Based on the analysis of supply and demand supported the event, students can evaluate the profitability of this huge investment. "Hide
by Kenneth Corts Source: Harvard Business School 6 pages. Publication Date: April 28, 1999. Prod. #: 799130-PDF-ENG