Dunkerque, Largest Aluminium Smelter in Europe, Plans to Cut Output 22%

SHANGHAI, Sep 7 (SMM) - Aluminium Dunkerque Industries France, the largest aluminium smelter in Europe, announced to cut its output by 22%, and the senior executives warned that the surging electricity prices were threatening the sector. 

Guillaume de Goys, the CEO of the company, said that part of the production capacity would be shut down starting next Monday, and the whole suspension was scheduled to be completed before October 1. The company last year produced 290,000 mt of aluminium.

In fact, it had more advantages over its components as it had purchased most of the power with fixed price under the France’s ARENH plan, but the price of the rest power were determined by the market.

The aluminium production in Europe has actually fallen to its lowest level since 1970s as the soaring energy costs delivered a severe blow to this energy-intensive sector. Norsk Hydro, another large-scale aluminium smelting enterprise, also planned to close one of its smelters in Slovakia before the end of September.

It is learned that American Industrial Partners acquired Aluminium Dunkerque Industries France last year, which cut its production 15% last winter, but has maintained full production since June this year.

It remains uncertain when the production can be restored without losses. Guillaume de Goys said that the high electricity prices prevented the smelter from running at full capacity. The current break-even point, he suggested, stood at EUR 250/MWh.