Europe’s largest aluminium smelter is not planning for further production cuts after the recently-begun 15 percent cut in aluminium output announced last week. Such was the message given by an Aluminium Dunkerque spokesperson on Friday.
Per the spokesperson, the Dunkirk aluminium smelter is awaiting relief for high power prices from the French government, which is slated to arrive in April. However, the spokesperson said the expected relief will not prompt the company to restart the curtailed aluminium capacity in the foreseeable future.
Aluminium Dunkerque joined several other aluminium smelters across the continent in cutting capacity as a response to a surge in power prices that have taken a chunk out of the already razor-thin margins. Help for the struggling firms is on the way in the form of state power company EDF releasing more electricity to turn back the historic high prices for the commodity.
Aluminium Dunkerque is among Europe’s most prolific producer of primary aluminium, boasting a nameplate capacity of 285 thousand metric tons per annum. American Industrial Partners is the plant’s owner, but their claim continues to be challenged by GFG Alliance after the latter defaulted on a loan for the plant and AIP took title as a result.