The aluminum industry in Germany is in danger: Why more sensible economic policy is urgently needed.

The aluminum industry in Germany is in danger: Why more sensible economic policy is urgently needed.

According to a report from www.maschinenmarkt.vogel.de, Germany is in a recession that is also affecting the aluminum industry. The production volume fell significantly in 2023, especially in primary production. The difficult location conditions and competition with importers from third countries are putting additional pressure on companies.

The economic impact on the market is significant. Due to the decline in production in the aluminum industry, other industries that rely on aluminum could also expect prices to rise. In addition, jobs in the industry and among suppliers could be at risk as companies are confronted with over-regulation and a lack of understanding from politicians.

The closure of aluminum smelters will have an impact on the entire economic chain. Suppliers, machine builders and other industries that rely on aluminum products could be affected. The decline in production in semi-finished aluminum manufacturing suggests that other industries that process aluminum products will also feel a decline in the quantity and variety of available products, which could lead to supply bottlenecks.

The situation is also worrying for Germany as a business location, as the member companies of the aluminum industry have doubts as to whether their investments, innovations and contributions to economic prosperity are politically perceived and valued. This could lead to companies withdrawing from Germany and relocating to another, less regulated location.