French aluminium smelter to chop output by 15% on power prices

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Steam rises from a cooling tower of the Electricite de France (EDF) nuclear energy station in Civaux, France, October 8, 2021. REUTERS/Stephane Mahe

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PARIS, Jan 7 (Reuters) – A significant aluminium smelter in northern France is to scale back manufacturing by 15% in response to hovering electrical energy costs, a spokesperson for the location’s proprietor American Industrial Companions (AIP) stated on Friday.

The smelter at Dunkirk, which has annual capability of about 285,000 tonnes, has already lower output by 10% and can cut back it by an extra 5% subsequent week, the spokesperson stated.

Dunkirk is one in all a number of aluminium vegetation in Europe to lower production since final month in response to document electrical energy costs which have harm margins for the energy-intensive business.

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The spokesperson declined to touch upon attainable extra manufacturing cuts. A CGT union official on the web site, Laurent Geeraert, instructed native radio station Delta FM that cuts can be amplified to round 25% of capability if electrical energy costs did not ease.

The Dunkirk smelter is amongst massive power customers discussing aid measures with the French authorities and state-owned EDF (EDF.PA), which operates the nation’s nuclear energy community.

Dunkirk obtains about 60% of its electrical energy via a preferential fee scheme, however is uncovered to market costs for the remaining 40%.

France’s finance minister stated on Friday he was engaged on additional measures to restrict the surge in electrical energy costs, with the federal government conscious of the burden on customers forward of April’s presidential election. read more

Personal fairness agency AIP acquired the Dunkirk smelter final 12 months following a debt default by a unit of earlier proprietor GFG Alliance. The takeover is being challenged by GFG, which is owned by commodities tycoon Sanjeev Gupta. read more

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Reporting by Gus Trompiz; Enhancing by Jan Harvey

Our Requirements: The Thomson Reuters Trust Principles.

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