Constellium criticizes EU emission rules; reiterates its growing focus on aluminium recycling

Aluminium product manufacturer Constellium is focusing on expanding its recycling capability, in order to leverage on aluminium’s recyclability and to cut down its carbon footprint, Chief Executive Jean-Marc Germain said in an interview during LME Week. However, he expressed concern over EU emissions rules which are hard on local industries.

“We’re investing to increase our recycling capacity and we see this as a big opportunity for us in the future,” he said. “In Europe we are looking at different scenarios.”

Recycling can reduce aluminium’s carbon footprint, which is linked to its energy intensive smelting process. Aluminium’s recyclability has made it a preferred choice for beverage packaging, prompting many beverage firms to shift to aluminium from plastic.

Constellium, a leading supplier of aluminium products for aerospace, transport and packaging sectors, expanded its recycling capacity in the U.S. two years ago by launching a new furnace at its Muscle Shoals plant in Alabama.

The group is waiting for an EU emissions policy change that will consider the benefits of a recycling plant in the aluminium supply chain. The group is also expecting a solution that will allow a company to buy carbon credit to cover its recycling furnace.

“It would be a pity that due to this policy of making energy more expensive ... it would be more economical to go elsewhere and buy primary aluminium produced using coal-fired power,” he said in an interview at Constellium’s Paris offices.

Constellium also suggested the idea of a carbon tax at the EU’s borders in order to be competitive to imports not subject to the same emissions standards. He however, did not disclose any detail on Constellium’s recycling capacbilities or its suppliers of primary aluminium.

Constellium is also facing pressure from its customers for supplying low-carbon aluminium products. It has begun certifying its sites under the industry’s “Aluminium Stewardship Initiative” and this was expected to lead it to change its mix of raw material suppliers, Germain said.