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Brexit
Aluminium extruding is a process through which alloyed material is heated and moulded into shapes that have uses in the
automotive, infrastructure and construction sectors. The EU has set tariffs on the products at 22.1 per cent, while the US has put
them at 33.3 per cent. © Youril/Dreamstime
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11/02/2023, 11:48 UK aluminium sector at threat of wipeout by post-Brexit anti-dumping duties | Financial Times
“It’s not just a few percentage points difference, it’s half of the EU level. The duties
will be so low it will simply be absorbed by the Chinese exporters,” warned Roger
Ablett, managing director of extrusions at Hydro Aluminium UK.
Ablett warned that the lower UK tariffs on top of a steep rise in energy bills would
result in factory closures, continuing a trend of consolidation and production
shutdowns in the country.
“If these final intended measures are at the level they are at the moment then it’s
obvious what will happen — that history of closure will continue,” he said. “It could
be a complete wipeout.”
He added that closures could also leave the UK re-exporting the Chinese extrusions
to EU countries, putting Britain at risk of a trade dispute with Brussels.
Small UK-based producers that supply another 25 per cent of the country’s
approximate 190,000 tonnes of demand for aluminium extrusions say they could
also be at risk under the proposed duty.
“In reality if they take away the boundaries or open up the floodgates, we will be
left exposed and the UK will lose its internal supply chain for aluminium
products,” he warned.
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11/02/2023, 11:48 UK aluminium sector at threat of wipeout by post-Brexit anti-dumping duties | Financial Times
The TRA has had a faltering start since it was established in 2021. It was forced to
change its position on anti-dumping duties on steel from China in September after
provoking outcry from the domestic industry after initially suggesting measures on
imports should be lifted.
The authority began its investigation into the Chinese companies last year and
concluded in May that it had “found clear evidence of dumping and injury” for UK
producers. Its recommended tariffs for aluminium extrusions range from 7.3 per
cent to 29.1 per cent depending on the producer.
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