The German aluminium industry is suffering particularly badly from high energy costs and the weak economy. The industry recorded significant declines in production in almost all sub-sectors in 2023. The decline was particularly pronounced in primary production.
After a drop of more than 30 per cent in the previous year, production in German smelters fell by a further 45 per cent to 189,000 tonnes in 2023. They still produced slightly more than a third (37 per cent) of the volume before the energy crisis. Even in 2009, the year of the economic and financial crisis, significantly more primary aluminium was produced in Germany. Until 2021, Germany was the largest producer of primary aluminium in the European Union. Since then, companies have been forced to take drastic measures due to the persistently very tight situation on the German electricity market. One of the remaining four German aluminium smelters was finally decommissioned at the end of 2023.
Companies in the aluminium semis processing sector also suffered significant declines (-9 per cent). With 2.33 million tonnes production volume reached its lowest level since the financial crisis. Among these, manufacturers of extruded products recorded a particularly sharp drop of -15%, producing 500,000 tonnes. Production among manufacturers of rolled products also fell significantly to 1.83 million tonnes (-7 per cent). While the companies are struggling with the difficult conditions at their locations, they are also facing increasing competition with importers from third countries where ecological, social and ethical standards are significantly lower.
„The year 2023 has shown very clearly: The energy transition strategy in its current form is not working. Overregulation, massive bureaucracy and a lack of understanding of the importance of industry for prosperity and participation in Germany are damaging acceptance of the need for a smart climate protection policy. As we have repeatedly emphasised, without aluminium, resilient supply chains and more strategic independence from third countries, the transformation of European industry will not succeed. Furthermore, there is an urgent need to put the importance of industry as a driver of employment and prosperity back at the centre of political decisions. It is not good news if the CO2-emissions will fall to their lowest level since the 1950s in 2023. This is not the result of a smart energy policy, but the result of a disastrous economic policy.“
Rob van Gils, President of Aluminium Deutschland (AD)
The member companies of AD are very concerned about Germany as an industrial location with a view to the new year. They are asking themselves the legitimate question of whether courageous entrepreneurship, innovative strength and their contribution to economic prosperity are even recognised or even appreciated politically. Companies can certainly cope with economic cycles, but not with ever-increasing over-regulation with a moralising finger but without an industrial policy compass.
The President of AD commented: „Our companies have been investing in more efficient and therefore CO2-lower production. Both our products and our processes have the footprint as an important goal in mind. For us and for our customers. Instead of strengthening and supporting this development with smart framework conditions, additional burdens are being added year after year, month after month. This cannot and will not go on for long. The stock market wisdom also applies here: the jobs are not gone, they are just somewhere else.“
Source: Aluminium Germany
