Aluminium Deutschland issues stark warning on Germany job cuts and relocation risk

Aluminium Deutschland

Aluminium Deutschland issues stark warning as German aluminium producers face a deeper competitiveness squeeze. High power prices, weak demand, and new compliance costs are driving restructuring decisions. Aluminium Deutschland issues stark warning that more than a quarter of companies plan or have made job cuts, while 13% consider relocating production abroad.

Production decline since 2021 signals structural pressure

Production has remained well below pre-crisis levels across the sector. In Germany, output sits at roughly 76.5–87% of 2021 levels, with the sharpest drops in extruded and rolled products. Therefore, the industry views the downturn as structural, not a short cycle dip.

Semi-finished aluminium production held broadly stable year on year in the third quarter at 593,000 tonnes. January–September output reached about 1.8 million tonnes, which still trails 2021 momentum. Meanwhile, aluminium makers say weak activity in machinery and automotive demand is limiting any near-term rebound.

CBAM and energy costs raise the investment and relocation calculus

CBAM is set to raise effective landed costs for imported aluminium in Europe. The European Union imports about 70% of its aluminium, which amplifies the policy impact on downstream users. As a result, CBAM-related costs could add roughly €30–446 per tonne, depending on carbon footprint.

Executives are warning that restructuring is becoming unavoidable. Rob van Gils said companies must consider capacity reductions, relocations, and job cuts to survive. Aluminium Deutschland issues stark warning that well-paid industrial jobs are at risk without policy measures that restore investment confidence.

The Metalnomist Commentary

Germany’s aluminium value chain is colliding with a cost stack it cannot fully control. Meanwhile, CBAM will reward low-carbon metal, but it also pressures import-heavy processors. Therefore, the winning strategy will combine power cost relief, faster permitting, and verified low-carbon supply contracts.