The Dutch Aluminum producer, Delfzijl Aluminum commonly known as Aldel has been safeguarded from a third-time bankruptcy but it pursues to axe several jobs. The present director of the company, Chris McNamee and his company Aloft are taking over the facility in Delfzijl from the American private equity fund York Capital. However, the reorganization will be encountering 120 lay-offs from 325 permanent employees and it is anticipated that it will drive Aldel to get rid of almost all its debts.
In 1966, Damco Aluminum Delfzijl (Aldel) was established in Delfzijl and considered as one of the biggest employers in Northeast Groningen. The plant melts and casts high-quality aluminium that is consumed in the automobile sector among others. Due to the high prices for electricity and gas, Aldel had to cut production sharply earlier this year because it was no longer profitable to produce aluminium.
Aldel has had a hard time in recent years. In 2013, bankruptcy was already filed because of high energy prices. Four years later, another bankruptcy followed. Private equity fund York Capital took over the company in 2017 and invested 70 million euros in new furnaces and 75 jobs were added.
As one of the largest energy consumers in the Netherlands, Aldel smelter experiences a new problem, as it has to pay a lot of emission rights, with which it reimburses the CO 2 emissions associated with generating the power.
The price of aluminium is determined on the world market and smelters cannot pass on emission allowances in the price of their end product. Metal manufacturers in Germany and France are compensated for their emission rights and can continue to operate, but the schemes for Dutch companies expired in 2020 and no decision has been made for the coming years, while the ovens in Delfzijl are off for the time being.
The takeover will not disrupt too much, as the management will remain in place, as will the board. McNamee said: “Aldel's manufacturing strategy also remains unchanged. We are on the right track. I believe in the future of this factory, as long as the Dutch government keeps its commitments when it comes to offsetting emission rights.”
Both Brussels and The Hague have promised an EU-wide level playing field when it comes to offsetting allowances. McNamee is concerned that the cabinet has not provided any clarity to date. “If this continues, production will disappear to France, Germany or China. They don't have that CO 2 tax there."
According to trade union director Albert Kuiper of FNV Metaal, the dismissal round that was announced in September is slightly less severe than expected. "We are still looking at whether people involved can still fill vacancies."
The unions are also waiting for clarity from the cabinet. According to Kuiper, return arrangements have been agreed upon in the social plan. “As soon as the factory is allowed to open again, you will need those people immediately. Aldel saw them leave with a heavy heart.”
Responses
