The Netherland’s only primary aluminium maker halting production from October 11 due to electricity prices

Aldel, a Dutch aluminium maker based in Delfzijl, is halting its primary aluminium production because of the current rise in electricity prices, which usually account for 40 per cent of the total aluminium production cost. The news came after the Dutch firm’s chief executive officer Chris McNamee told Reuters that the smelter would remain idled from October 11 until at least early 2022.

According to the company, the cost of electricity is currently about 4,500 euros per tonne of aluminium, while the aluminium selling price is around 2,500 euros per tonne.

"We've got a squeeze on us now because we're not hedged, and we're not hedged because the Dutch government isn't giving us visibility on a level playing field," CEO Chris McNamee said.

Aldel is calling on the Dutch government to compensate its additional production cost due to the higher electricity prices. The company draws up to 200MW of electricity when operating at maximum capacity.

"We just want the same conditions that the French and Germans have," McNamee said, as those two European countries compensate their energy-intensive industries for costs incurred as a result of higher European prices for CO2.

Aldel is the only producer of primary aluminium in the Netherland, with 110,000 tonnes of primary aluminium and 50,000 tonnes of recycled aluminium production capacity annually.

McNamee said its recycled aluminium production would continue but provided no update on layoffs if the stoppage continues. Aldel, owned by York Capital, has 400 employees.