Europe’s Top Aluminum Plant Will Cut Output 22% on Energy Costs

Uh Oh.

Europe’s Top Aluminum Plant Will Cut Output 22% on Energy Costs

Europe’s largest aluminum smelter will reduce production by 22%, the latest in a wave of cutbacks due to soaring power prices that executives warn are threatening the industry’s very existence.

European aluminum production has already dropped to the lowest levels since the 1970s as the power-intensive industry grapples with skyrocketing energy costs. Norsk Hydro ASA is preparing to close a smelter in Slovakia by the end of the month.

“The primary aluminum industry in Europe has already paid a large tribute to this energy crisis. If we reduce further, we will be in a position where the primary industry will have completely disappeared in Europe,” de Goys said. “In terms of sovereignty, it would be bad for Europe.”

This is just one story about one industry, but it made me think that if this is happening to the aluminum industry, what about all the other heavy industry in Europe? They are all being hit with high energy costs. Post sanctions I imagine Western Europe may emerge a more deindustrialized, and poorer part of the world.