Al sector severely harmed by Brexit uncertainty: Alfed

Delays and uncertainty over the UK's departure from the EU have severely harmed many facets of the UK aluminium industry, Aluminium Federation (Alfed) president Giles Ashmead said at the organisation's annual parliamentary lunch in London yesterday.

"Three years ago when, shortly after the referendum, we learnt that it could take as long as three years to exit Europe, we informed you of the damage such a period could have on our industry," Ashmead said to an audience that included Andrew Stephenson MP, parliamentary under-secretary for business, energy and industrial strategy.

"Three years later, not only have these predictions proven to be true, but the delay to leaving caused by the inability of parliament to agree to any deal lengthens the period of uncertainty," Ashmead continued. "This increases the damage and leaves us in limbo, whilst the threat of a no-deal scenario, with its accompanying tariffs and logistics issues, still hangs over us."

Many Alfed members invested in stock and warehousing earlier in the year in anticipation of the UK leaving the EU at the end of March, as originally announced by prime minister Theresa May. When that leaving date was pushed back at short notice to the end of October, those investments were wasted, Ashmead said.

And Alfed itself has lost several members this year as their parent companies in Europe have decided that during the Brexit process it is easier to supply the UK from their facilities on the continent rather than maintain British subsidiaries.

Other domestically owned aluminium producers have reported that many European customers are looking elsewhere for feedstock and that some UK plants could close if this trend continues. Where European customers have maintained relationships with UK producers, many have said they expect their UK suppliers to underwrite any additional costs arising from Brexit.

"This damage to our industry and loss of jobs is all before we leave Europe, and if we do so without a deal, we can see it getting far worse," Ashmead said. "There is the possibility of the Chinese dumping into the UK some of the aluminium they can no longer supply to the US, without any tariff penalisation, unless the government puts safeguarding measures in place."

Ashmead concluded his address by pleading with MPs to change their approaches to Brexit so that the significant damage already incurred to UK industry might be tempered.

"They urgently need to soften their position and compromise on some of their beliefs, so we can get Brexit over the line, and if they want to minimise the damage they are creating to the aluminium industry and many others, they need to reach agreement with a firm view of having a deal with Europe, so the blood loss they have stimulated is stemmed and not accelerated," he said.

Andrew Stephenson did not mention Brexit in his address to the lunch guests.