While the energy crisis in Western Europe that began in 2021 and worsened following the start of last year’s Russian hostilities in Ukraine has passed its peak, it still affects energy-intensive aluminum production. Production in Western Europe fell by 12.5% in 2022.
“Speira has decided to completely phase out its smelting operations at Rheinwerk,” the company said in a statement, adding that it will invest 30 million euros ($32 million ) to increase refining capacity at the Rheinwerk plant.
Speira, which cut aluminum production at the plant by 50% in October due to high electricity prices, said its decision to close the remaining 70,000 tonnes of liquid aluminum at Rheinwerk in the second half of 2023 will turn it into a production facility for aluminum rolling and processing. company.
About 300 workers will be affected by the decision, but Spara said customers will not be affected as the company seeks to honor contracts by replacing lost production with outsourced metal supplies.
Production costs remain high for many European aluminum smelters, while aluminum prices on the London Metal Exchange have fallen 37% since peaking a year ago.
Prices fell after market concerns about possible sanctions against Russian metal did not materialize, and the lifting of strict restrictions due to COVID-19 in China has not yet revived consumption there.
