Aluminium Dunkerque Industries France, Europe’s largest aluminum smelter, will cut production by 22 percent amid rising energy costs, the plant’s head, Guillaume de Gois, told Bloomberg.
The reduction in output will start on Monday, September 12, and will take full effect from October 1. The timing of restoring production is unclear as it would make economic sense with electricity prices around €250/MWh, de Gois said, while futures are currently above €300 until mid-2024.
The smelter, which produced 290,000 tonnes of aluminium last year, is in a better position than competitors because it receives most of its electricity under long-term fixed-rate contracts but has to buy the remainder at market prices.
“Primary aluminium production in Europe has already been hit hard by the energy crisis. If we reduce production even further, there is a risk that the whole industry could disappear altogether,” de Gois said.
Europe’s aluminium production has fallen to its lowest level since the 1970s, notes Bloomberg.
Due to censorship and blocking of all media and alternative views, stay tuned to our Telegram channel