Aluminium Deutschland urges Germany’s federal government to strengthen the aluminium industry after its production volume fell for the third year in a row in 2024 – demanding more sources of electric and hydrogen energy, a closed loop for scrap, and the prevention of unfair competition from third countries.
Apparently, the aluminium industry’s production developed unevenly in Q4 2024. Aluminium recyclers experienced a slight increase, producing 648,000 tonnes (+3%) of recycled aluminium between October and December.
However, the overall production level reached around 2.7 million tonnes for 2024 as a whole – a 2% decrease compared to the previous year.
Producers of semi-finished aluminium products fell just short of a 507,000-tonne production volume in Q4 2024, which marks a 4% decline. This marks the eleventh quarter in a row that its production rates have fallen.
It produced around 2.3 million tonnes (-3%) of semi-finished products in 2024, and within this, rolled product manufacturers saw a ‘comparatively moderate’ decline of 1.8 million tons (-2%). However, the production of aluminium extrusions fell by 7% down to 467,000 tons.
Aluminium Deutschland calls upon the federal government to create competitive local conditions and prevent a loss of wealth. It says the German aluminium industry employs over 60,000 workers and achieves an annual turnover of €24 billion; but warns that 20% of industrial value creation is at stake, and that the social market economy is at risk without well-paid and collectively agreed jobs.
It argues that aluminium plays a role in pursuing carbon neutrality and that global demand for aluminium will increase ‘significantly’ in the coming years, but the right framework conditions are necessary to ensuring that Germany profits.
“The next federal government must make the competitiveness of the location the top priority of the legislature in order to achieve the turnaround,” said president Rob van Gils. “To this end, we have clearly formulated six demands in our recommendations for action for the Bundestag election.
“Even in 2025, the trees will not grow into the sky. This makes it all the more important to set clear priorities immediately after the coalition negotiations so that confidence in the location returns and the economy picks up again.
“Our companies are highly innovative, technically first-class, highly competent partners of our customers. Now it is time to break the political shackles!
“All the demands we formulated before the Bundestag elections can be summarised in one central point: restoring international competitiveness. And that can only be done with smart politics from day one.”
In its list of demands, Aluminium Deutschland calls upon the government to ‘shape the energy market in such a way that security of supply, price competitiveness and sustainability are equally guaranteed.’ Supply infrastructure should be expanded; sufficient network capacities should be achieved; and an efficient hydrogen network and additional points of electricity supply should help decarbonize industry processes.
Energy costs should be brought to a competitive level with other European countries, as well as the USA and China. Aluminium Deutschland cautions that network charges are set to surge, but also underlines the importance of decarbonizing energy production to keep up with international competition.
“Sustainability, once defined as a balance between economic, ecological and social issues, must be understood in this way again,” it says in a statement.
Furthermore, it encourages the government to tackle bureaucratic requirements, which it describes as ‘unproductive’ and lacking in added value. It seeks an economic policy that relieves pressure and the simplification of ‘long and complex’ approval procedures.
“The reduction of excessive reporting obligations and documentation requirements is crucial in order to give companies the freedom to innovate, grow and be competitive,” it says.
Its third demand is for technological leadership in the circular economy. Aluminium Deutschland calls for Germany to undertake the targeted promotion of innovative technologies – both infrastructural and in burner, furnace, and sorting technologies – to expand its leadership and increase competitiveness.
It argues that, while further development requires investment in research and development, the existing recycling structures in place do not require additional regulatory interventions; aluminium reportedly contains the ‘highest possible’ amount of recycled content already, since it saves energy and CO2 and fulfils customer demand.
On that note, Aluminium Deutschland pushes the government to secure scrap quantities as a ‘key requisite’ for a strong circular economy. Establishing long-term partnerships and legal frameworks is anticipated to increase the availability of secondary materials, secure raw supply, and cut down on the industry’s CO2 footprint.
This should include introducing measures to keep scrap within the EU, Aluminium Deutschland says.
It goes on to argue that Germany should have more responsibility in Europe and take a more active role in representing the interests of domestic industry. It believes that ‘smart political support and clear impulses are necessary’ to overcome issues in industry, climate, and trade.
The Clean Industrial Deal is underlined as an important factor in ensuring Europe’s long-term competitiveness, and Aluminium Deutschland instructs the government to protect companies against unfair competition from third countries with trade policy protection instruments.
The Carbon Border Adjustment Mechanism should also ‘remain administratively manageable’ and protect local producers and processors from competitors who do not participate in the EU emissions trading system or comparable systems, the statement adds.
Aluminium Deutschland adds that policy measures should offer long-term planning security and incentivize investments. It states that ‘short-term’ and ‘abrupt’ approaches fall short, and that tax and levy burdens should be reduced to make more room for investments.
“Only with reliable framework conditions and relief for the economy can companies grow sustainably, strengthen their competitiveness and make a contribution to transformation,” the statement concludes.
The organization previously called for ‘more common sense’ in German economic policy as over-regulation, high energy costs, and economic recession raised concerns over Germany’s future as an industrial location for aluminium. The country was reported to be the largest producer of primary aluminium in the EU until 2021, overseeing 37% of the volume of aluminium produced before the energy crisis; it was still said to oversee more production during the economic recession of 2009 than it did in 2023.
Aluminium Deutschland also joined IG Metall, IGBCE, five federal states and various social partners in the German Aluminium Alliance. Its four common goals include circularity, climate-neutral production, fair competitive conditions, and social responsibility.
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