Alvance increases aluminium production by 10%
Alvance Aluminium said it had increased production by about 10% after US tariff changes. The smelter based in Lochaber, Fort William, UK, now exports about half of its production to the USA after the introduction of tariffs last year.
President Donald Trump imposed a 50% global tariff on imports of steel and aluminium with the UK being the only country to get a preferential lower rate of 25%.
Trump increased tariffs on steel and aluminium imports to encourage domestic production, but the US is still dependent on foreign metals for various industries including its automotive and aerospace sectors.
The Fort William plant, which has been owned since 2016 by the GFG Alliance, has its own supply of electricity from a hydro scheme.
The site has a smelting capacity of 48,000 tonnes a year and employs 200 workers.
Tom Uppington, Alvance British Aluminium Managing Director, said: “We’ve increased production by around 10% in recent months in response to changing global trade flows following US tariffs, allowing us to enter the US markets for the first time as well as supplying existing and new customers in the UK and Europe.”
He added: “While the conflict in the Middle East has pushed aluminium prices higher, it has also contributed to rising energy costs.
“Because aluminium production is very energy intensive, higher UK electricity prices currently offset the benefit of stronger metal prices, meaning we continue to cap production broadly in line with our self-generated power.”
