The “Corona” crisis hits German Aluminium Industry to drop in production

The outcome of the Corona crisis has forced customer sectors in Germany and Europe to halt or significantly reduce production. The automotive business, in particular, represents an industrial baseload in the aluminium industry.

Marius Baader, MD, General Aluminum Association Gesamtverband der Aluminiumindustrie e. V. (GDA), Düsseldorf said:"The German aluminium industry is looking at current developments with great concern.”

The number of break-offs from companies in the aluminium industry, primarily from the automotive business and mechanical engineering, had already shown de-growth previous year. The manufacturers of extruded products felt the drop in demand most severely; their production in Germany already lost around 10 % in 2019.

 Marius Baader added, "In the first quarter of 2020 we expect further double-digit declines.”

“In recent weeks, this momentum has intensified noticeably once again. The health and safety of our employees are paramount.”

To safeguard this, the companies are currently reorganising their production programmes and teams. The protective measures led to inefficiencies in production and further pressure on the profitability of the sites.

In this context, GDA welcomes the regulations already adopted to make it easier to draw short-time working allowances. Marius Baader said: "This and the short-term provision of liquidity by KfW are important steps towards stabilising employment and companies.”

The need of the present situation is the urgency and bureaucratic measures to stop the epidemic coronavirus spreading on one hand and on the other hand to ensure the survival of the companies. It was now essential to authorize companies in the aluminium industry the greatest possible flexibility in maintaining production, occupational health and safety are paramount in these times.

The free movement of goods in Europe is important for the aluminium industry, as Marius Baader said: "The free movement of goods must be maintained in any case, as the supply chain of our industry is organised based on a high degree of division of labour”.

The financial crisis in 2008/2009 had once proved that the aluminium industry identical to other basic industries required much longer returning to pre-crisis levels. "Political action should take into account the special competitive situation of the aluminium industry vis-à-vis non-European market competitors and ensure that the locations in Germany do not fall further behind as a result of ill-considered measures".