Industry concern over insolvency of aluminium major

Berlin – The insolvency proceedings initiated by Voerde Aluminium GmbH – the 3rd largest aluminium producer in Germany – reflect “creeping de-industrialisation” in the EU, Ulrich Grillo, chairman of industry body the WVM (WirtschaftsVereinigung Metalle), has warned.

The situation, said Grillo confirm that the production of metals, particularly aluminium, is jeopardised by high energy prices that are no longer competitive at international level.

“It is absolutely imperative for the mitigation rules for the energy-intensive industry announced by Brussels and Berlin to be implemented without further delay,” said the metals industry group leader

“Due to the good economic situation, there is a danger of overestimating industry’s ability to withstand the burden of state tax controls, and to already regard pending mitigation as having a positive effect.”

Non-ferrous metals companies are awaiting a decision on compensation for demonstrated CO2 costs and for the shutdown regulation - both of which are still pending.

The industry, argues Grillo, must not be made responsible for energy price increases as a result of mitigation rules that it needs: these clearly result from the state system’s promotion of renewable energies, particularly photovoltaics.

“Non-ferrous metals are produced in Germany according to the high environmental standards, with resource-saving material cycles and a unique capacity for the recycling of the basic materials used.

“The value chains must be maintained in their entirety, from top to bottom, to enable production to continue in the internationally competitive German industrial base to the full technological extent.

“This means preventing both carbon leakage risks and the de-localisation of industry outside our country. The energy-intensive industry needs secure, clean and affordable electricity. Under this premise, it will make its contribution to the transition to alternative energy.”