Alvance Aluminium boosts shipments to US, capitalising on fresh tariff framework

Alvance British Aluminium has boosted exports to the United States, capitalising on the newly introduced tariff framework. Its Fort William smelter has ramped up shipments to the United States, capitalising on the fresh tariff advantages unlocked by the US-UK Economic Prosperity Deal announced in May.

Image Source: Alvance British Aluminium / Facebook

With UK-produced aluminium now enjoying a clear edge over many global rivals, the smelter has redirected spot sales from its summer maintenance downtime straight into the lucrative US Midwest market, where premiums outstrip those in Europe. The strategy is already in motion - a third-party merchant has snapped up 1,000 tonnes, now making its way across the ocean to American buyers.

Alvance confirmed its commitment to strengthening the long-term performance of its Lochaber operations, with around £1 million allocated during the summer maintenance programme. The investment covers -

• Critical equipment upgrades
• Installation of new systems
• Process reliability enhancements
• Efficiency improvements

Alvance British Aluminium runs the UK's last remaining aluminium smelter at Fort William, which is powered entirely by hydroelectricity. GFG Alliance announced firm plans to restart operations at its Liberty Steel plant in Dalzell, following the award of a 40-kilotonne contract for maritime applications. Production is scheduled to commence once slab deliveries arrive, expected in October.

Jeffrey Kabel, chief transformation officer, added, "The plan that GFG presented to the court would have secured new investment in the UK steel industry, protecting jobs and establishing a sustainable operational platform under a new governance structure with independent oversight. Instead, liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution."

On 21 August, the UK Government assumed control of the country's third-largest steelworks in an effort to safeguard 1,450 jobs. The High Court ordered the compulsory liquidation of Speciality Steel, formerly part of Sanjeev Gupta's Liberty Steel group. The facilities in Rotherham and Stocksbridge, South Yorkshire, will now be overseen by the Official Receiver and special managers from Teneo.

The government has pledged to fund wages and operating costs until a buyer is secured, though Speciality Steel's leadership criticised the winding-up decision as "irrational." GFG announced plans to submit a bid, in partnership with debt and equity backers, to regain control of the business and will present its proposal to the Official Receiver.

"We are optimistic that the strengthened UK safeguards which took effect from 1 July, ongoing Trade Remedies Authority anti-dumping investigation and the window of opportunity presented by the current position in respect of US tariffs will continue to support a positive future for Liberty Dalzell, with the United States as a key export market," read a statement.

UK Steel director general Gareth Stace said, "UK Steel welcomes the government's recognition of the importance of the Liberty Speciality Steel assets and hopes that a new owner is found quickly and can inject the investment and working capital required to return production volumes to previous levels. The low production levels of recent years have left significant holes in the domestic supply chain that have been filled by imports."

Managing director Tom Uppington added, "The shift in tariff structures has allowed us to strengthen our market position and extract more value from our output. By combining short-term agility with long-term investment, we are ensuring that Alvance continues to compete effectively on the world stage. Our ongoing site improvements ensure we can continue supporting local jobs, the regional economy, and the contribute towards the country's energy security."