Can Swiss aluminium stay competitive despite energy headwinds and fluctuating trade?

The Swiss government is actively backing key players as they navigate rising energy costs, focusing on boosting domestic production and promoting energy-efficient, recycled aluminium solutions. Even with challenges like skyrocketing electricity prices and fluctuating exports, Switzerland’s aluminium sector is proving its resilience, innovation and strong commitment to achieving its green transition goals.

Switzerland's powering up its aluminium game

Switzerland is putting a spotlight on the aluminium industry, recognising the metal's incredible versatility, sustainability and its vital role in various high-value sectors. Aluminium is prized for its lightweight nature, resistance to corrosion and its impressive recyclability, making it a key player in energy savings and the country's green transition goals. By honing in on aluminium, the Swiss government is looking to boost domestic production, improve competitiveness and gain strategic advantages in areas that are closely tied to innovation and energy efficiency.

A look at Swiss downstream and primary aluminium industry

Some of the Swiss key aluminium downstream players 

• Angenstein AG: Specialised in aluminium manufacturing and processing for various industrial applications. 

• Hydro Aluminium Walzprodukte AG: Produces aluminium rolled products for automotive, packaging, and industrial sectors. 

• Johann Renfer GmbH: Provides aluminium extrusion and fabrication services for structural and architectural uses.

• GF Casting Solutions AG: Manufactures high-precision aluminium castings for automotive, industrial, and energy sectors. 

• Schubarth + Co AG: Engaged in aluminium trading and distribution, providing materials for manufacturing and construction.

Apart from these, the country is home to several prominent aluminium facilities, including Dadco, recognised for supplying alumina-based products. Hydro Aluminium International SA manages sales offices for bauxite and alumina. Constellium Valais SA runs four production facilities in the Valais region, including billet casting in Chippis, slab casting in Steg and extrusion and plate shops in Sierre. International Innovation Technology Holding Trading and Services SA (IITH) with a focus on developing, executing and managing productive assets in the aluminium industry. 

Current challenges of the Swiss aluminium industry 

The Swiss aluminium industry is currently facing a variety of challenges, such as soaring energy costs and pressures on local production. To tackle these issues, the government has rolled out targeted public support for key companies, which includes a four-year exemption from certain electricity grid taxes. 

In 2023-2025, the average business electricity rate in Switzerland was approximately USD 0.285 per kWh. However, in 2021, the same was recorded to be approximately USD 0.110 per kWh, indicating an increase of almost 159 per cent in the overall energy cost.