Due to some recent changes in the United States’ tariffs, Alvance British Aluminium, one of the world’s greenest metal production plants, announced a 10 per cent production boost. The smelter is located in Fort William and exports nearly half of its output to the US after the tariffs were put in place last year. The boost, irrespective of the crisis, has been able to enter the US market because the UK is the only country to face a lower tariff. 

Previously, Trump imposed a 50 per cent global tariff on aluminium and steel imports, but the UK was the only country to receive a special reduced rate of 25 per cent. Trump's decision to raise tariffs on aluminium and steel imports was made with the intention of boosting domestic production. Irrespective of this action of increasing the tariff, the US has been dependent on imports for metals, which are crucial for industries like automotive and aerospace.

Owing to this, the Fort William facility, a part of the GFG Alliance since 2016, has been receiving its own electricity supply because of a hydro scheme. With this nudge, the smelter holds a 48 thousand tonnes per year capacity along with 200 employment opportunities. 

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The Managing Director of the firm, Tom Uppington, shares that with Trump lowering the tariff, it has enabled them to enter the US market for the first time. Not only this, but by entering the US market, the firm can cater to both existing and new customers in the UK and Europe.

Since aluminium production is an energy-intensive process, the rising electricity prices in the UK are currently eating into the benefits of the stronger metal prices, leading to a general cap on production that aligns with their self-generated power. Over the last 50 years, many smelters in both the US and the UK have closed down, mainly due to soaring electricity prices.

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Members of the Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, are deemed to produce over six million tonnes of aluminium each year. As reported by the International Aluminium Institute, this has been possible because of their access to affordable energy from oil and gas; the regions have managed to grab about 8 per cent of the global market. However, the ongoing US-Israel conflict with Iran and the attacks on shipping in the Strait of Hormuz have created disruption in supply chains, also affecting the prices.

Chris Bryant, the Trade Minister of the UK, in support of the firm, calls the boost “fantastic” and says it has taken advantage of the “trade wins” achieved by the UK government. He pointed out that the UK stands out as the only country in the world to secure a 25 per cent tariff on steel and aluminium.

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