European Aluminium calls for stronger EU industrial policy to increase competitiveness

European Aluminium has called for a strong policy from the European Union to increase the competitiveness of European aluminum producers, it said Oct. 28.

EA Chair Ingrid Jorg called for the measures at the association's annual general assembly held Oct. 27, saying that the competitiveness of European producers was harmed by China's unfair trade practices and a lack of access to affordable, green energy.

"To tackle important systemic challenges effectively, we need a bold and future-proof EU industrial strategy. Mainstreaming industrial competitiveness across all policy areas should become the norm," Jorg in her address at the assembly.

The general assembly is a key event for the industry attended by executives and experts to reflect on the development of the industry and the key challenges being faced in the base metal being used in Europe's green transition.

EU industries require a global level playing field and predictable, coherent legislation to inspire business confidence, attract investments and remain competitive globally, EA Director General Gerd Gotz told S&P Global Platts in response to questions.

"Trade, climate, energy and raw materials policies need to be well-aligned," Gotz said. "European industries need to be supported with legislative, funding and compensation instruments in the EU's transition to a sustainability-focused and climate-neutral economy."

To tackle the lack of access to renewable energy, Gotz said long-term corporate power purchase agreements should be promoted to facilitate access to competitive carbon free electricity at more predictable prices than spot markets.

Industrial demand-response needed to be rewarded adequately for its benefits for grid stability, he added.

On the trade side, Gotz said the EU needed stronger trade defense instruments against unfair trade practices stemming from excessive government subsidies and aggressive sectoral industrial policies in third countries such as China.

"The EU also needs to urgently press the World Trade Organization to review and update its multilateral trade rules, which are hopelessly outdated and reward poor behavior rather than punishing it," he told Platts.

Six new members in 2021

The EA also welcomed six new members in 2021, bringing the total to 95 members, representing around 85% of the total European aluminum production coming from 600 plants across 30 European countries.

The new members are Aluminium Bozen, Aluminij Industries, Arconic Corporation, Corialis, Speira and Yeşilova Holding.

"In light of today's challenging business environment, companies clearly see the value in being a member of our association and driving a common industry agenda with a single voice in policy areas such as energy and climate, trade, circular economy and innovation," Gotz said in a statement.