‘‘We see no change in the importance of the sustainability issue or the necessity to move towards a Circular Economy because of the pandemic”- Guido Aufdemkamp, Executive Director, The European Aluminium Foil Association (EAFA)

The European Aluminium Foil Association is the international body representing companies engaged in the rolling and rewinding of alufoil and in the manufacture of aluminium closures, alufoil semi-rigid containers and of all kind of flexible packaging. With its more than 40 members, the organisation represents the total aluminium foil rolling market in Europe. Guido Aufdemkamp, Executive Director of the European Aluminium Foil Association (EAFA), gives an insight into EAFA’s outlook for 2020 and business strategies post COVID- 19 in the below interview: 

AlCircle: What are your initial thoughts about the impact of Covid-19 on the global aluminium value chain?

Guido Aufdemkamp: The overall economic shock particularly impacts the automotive and aerospace sectors and will have huge negative consequences for aluminium demand in these industries. At the same time there is an increased demand for aluminium foil packaging but this cannot compensate for the decreases in the other segments. The overall economic recession will affect the whole industry adversely.

AlCircle: What’s your current assessment of the Covid-19 impact on the European aluminium industry?

Guido Aufdemkamp: The fundamentals of the industry are good but obviously impacted by the weaker demand. Once this recovers the European model might be an asset for the industry. Although we should not forget that one cannot accept the benefits of globalisation on one hand and refuse it with the other. But there must be a fair competition with similar rules on all sides.

Without any European Union and nationally driven stimulations of the industry, the impact would last much longer.

AlCircle: Have you developed/implemented any mitigation plans and strategies to minimize the impact of COVID-19 on operations?

Guido Aufdemkamp: Our industry is very much involved in food packaging and these end-markets are not suffering, indeed the pandemic is stimulating demand.

In the workplaces strict hygiene requirements and safety regulations for staff during production were already part of their everyday work practices. So the additional hygiene and physical distancing measures were possibly easier to implement than in other industries. Fortunately, our member companies reported very few positive cases and even these cases were not related to the plants themselves.

AlCircle: How COVID-19 changes the outlook for 2020 for the global aluminium industry?

Guido Aufdemkamp: It will be definitely negative. How much depends on many factors such as duration of lockdown, potential second wave or state driven demand programmes. In my view any more detailed projection is not possible.

AlCircle: How do you plan to keep offering sustainable services post this pandemic?

Guido Aufdemkamp: We see no change in the importance of the sustainability issue or the necessity to move towards a Circular Economy because of the pandemic. While certain measures might have to be postponed, because some countries cannot implement them at present, there is a real chance to create a more resource efficient economy after the pandemic. These past weeks and months have shown that if governments and citizens need to adapt, they are able to do so. We would like to see the same kind of fast, coordinated and collective response to climate change as we have seen related to COVID-19. Let’s not forget that climate change is a longer-term challenge for society than the current virus.

AlCircle: Could you please brief us your post COVID19 business strategies, if any?

Guido Aufdemkamp: As mentioned before sustainability and recycling remain high on our agenda. We will continue to serve our member companies with other activities, such as market analysis or communication projects, to highlight the benefits of aluminium foil. In addition EAFA will continue to explore new market opportunities and encourage innovation, through initiatives like the Alufoil Trophy.

AlCircle: Any suggestions you would like to offer to your business associates and customers to combat the present crisis.

Guido Aufdemkamp: I cross my fingers for those industry sectors so badly affected that the recovery will be swift, to minimise the long-term consequences of this pandemic. In my view many of us reshuffled priorities and we were all forced to implement new ways of working with each other. For example working remotely is easier than perceived and the need for direct social contact was overestimated before.