Energy costs limit aluminium growth
17 Jan 2014
The high price of energy is limiting investment in the UK aluminium sector, industry representatives have told the government.
Members of the Aluminium Federation (ALFED) met with Business & Energy minister Michael Fallon on Monday to discuss the lack of investment-led growth within the sector.
ALFED members blamed “soaring green taxes” and high energy costs as the root of the industry’s problems, telling the minister that if ”Britain and the European Union remain wedded to high taxes on energy”, then manufacturers and suppliers would look to to base production operations in other economies.
It’s clear that escalating green taxes are proving prohibitive to our industry
ALFED CEO Will Savage
ALFED informed Fallon that world demand for aluminium is forecast to double from 40m tonnes per annum to 80m tonnes by 2025, but raised concerns that the UK had lost 87% of its primary aluminium industry since 2010 - due mainly to the economics of energy prices.
ALFED chief executive Will Savage said: “With some aluminium companies reporting 20% of their running costs going to energy, it’s clear that escalating green taxes are proving prohibitive to our industry.”
ALFED asked the government to support the re-industrialisation agenda for Europe at the forthcoming European Council meeting by addressing the negative impact of EU policies and by agreeing a reduction of regulatory and energy costs and other taxation which makes the European aluminium industry uncompetitive globally.
It also asked that the government support the UK aluminium industry by cutting domestic energy taxation.
