Many have reduced their production of aluminum or zinc. Some have closed their factories. Everyone fears an “industrial war” which is beginning: the main European metal manufacturers, who say they are strangled by the excessive cost of gas or electricity, are asking Europe for help together.
On the eve of an extraordinary summit of the European Union on Energy scheduled for Friday, the bosses of 40 industrial groups – large users of electricity or gas to melt or transform metal – say in a rare joint letter addressed to the Commission wants to “sound the alarm regarding the worsening energy crisis in Europe”.
Sometimes dependent on Russian gas which is drying up in Europe, and exposed to a price of electricity and gas multiplied by “more than ten” since last year, they can no longer be competitive. And detect in this situation “an existential threat” for their future.
This threat is all the more paradoxical in that it comes at a time when metals are in massive demand on the planet to ensure the energy transition. According to the International Energy Agency (IEA), global metal consumption is expected to increase by 45 million tonnes by 2050, and up to 75 Mt if ambitious climate policies are decided upon.
Copper, aluminum, lithium, or nickel conduct or store electricity in automotive batteries or wind turbines. And must facilitate the abandonment of fossil fuels which emit CO2.
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Since the fall of 2021, with the electricity surge, exacerbated since the start of the war in Ukraine in February, Europe has reduced its aluminum production by one million tonnes, or 50%, and by half also for zinc, indicates the joint letter of the 40 bosses, sent by the Eurometaux association.
The sector “has been forced to make unprecedented production cuts over the past 12 months, and we fear that next winter will deal a decisive blow to many of our businesses” continues the letter.
The text asks the EU “to take emergency action to preserve these industries and prevent permanent job cuts”.
It is signed in particular by the bosses of Ferroglobe in Spain, Intals and Safimet in Italy, Aurubis and Elektrowerk Weisweiler in Germany, Aluminum Dunkerque, Constellium and Trimet which have factories in France, AMAG in Austria, ReAlloys and ZGW Boleslaw in Poland, OFZ in Slovakia, Vimetco Alro in Romania, European Aluminum in Belgium, WargonAlloys and Elkem in Sweden, Hydro in Norway, Holding KCM 2000 in Bulgaria, or Mytilineos in Greece.
In addition to aluminum and zinc, manufacturers of silicon and ferrous alloys are also affected. As well as the copper and nickel sectors.
“The war (of Russia once morest Ukraine, editor’s note) has become an industrial war, everything is connected, the industrial chains are being undermined one following the other,” one of the representatives of the company told AFP. ‘Eurometals.
At the same time, outside Europe, increases in aluminum production are announced almost everywhere among competitors who smell the windfall, in Brazil, Argentina, Australia, India, China and the United States, industrial. Even in Russia, where the giant Rusal has just launched production at a factory in Siberia, they point out.
Mirroring this, the text details the production stoppages or plant closures announced on the European continent.
For zinc, the 9 smelters that exist in Europe have seen production declines this year. Goldman Sachs estimates the volume that might not be produced at 750,000 tonnes, ie 45% of total European production.
For aluminium, Europe lost 1 million tonnes. In the Netherlands, the only Dutch producer of primary aluminum Aldel has completely stopped production.
The American Alcoa has announced production cuts for two years at its San Ciprian site in Spain, and cut its production at Lista in Norway by a third.
Alro, the only producer in Romania, has reduced its production by 60% and only 2 of the 5 production units are operating in 2022.
In Slovenia, Talum has reduced by a third since the end of 2021, as well as Trimet’s foundries in Hamburg. Those in Essen have cut their capacity by 50%.
Finally, in Slovakia, the Slovalco Hydro plant, which produces 120,000 tonnes of aluminum per year, has been completely closed since the beginning of September.
With MAP