Aluminium manufacturing sector to be boosted by automotive sector

The Aluminium Federation (ALFED), the UK aluminium industry trade association, says that British aluminium manufacturers and suppliers should take advantage of the significant growth in demand for the metal in the automotive sector.

The recent ALFED Aluminium in Road Transport conference at Thinktank Birmingham attracted more than 100 representatives from companies ranging from Jaguar Land Rover and Toyota to Norton Aluminium and Superform.

Amongst the speakers were renowned motoring pundit Quentin Willson, leading industry academic Professor David Bailey and analyst Paul Williams, of London based CRU, which specialises in commodities analysis and consultancy.

Mr Williams told the conference: “We can expect to see 5% year-on-year growth in aluminium demand for the foreseeable future, with transportation demand growing closer to 7% per annum. Aluminium is the success story and automotive is the key to unlock its potential.”

Aluminium use in cars has been growing annually since 1970 and by 2020 the global automotive sector will be using 2m tonnes per year.

Will Savage, CEO of ALFED, added: “This growth presents a huge opportunity for companies to enter the supply chain providing a whole range of products and services to car makers, from processing to design. Currently, on many cars made in Britain only 30% of components are produced in the UK but over the next few years, we will be working with industry and the Government to change that.”

The UK’s seven volume car manufacturers along with commercial vehicle and niche car counterparts are sourcing from around 2,500 component suppliers across the country, but apparently there will be £3bn worth of supply chain opportunities in the coming years.

In December these messages will be taken to Parliament. The Westminster briefing will be hosted by ALFED with the UK Aluminium All-Party Parliamentary Group, chaired by David Mowat MP.