Aluminium extrusion industry warns of factory closures as production falls
Headline by Prism · from 1 report
The Indian aluminium extrusion industry reports declining production, rising imports, and looming factory closures, prompting calls for government intervention.
The Hindu BusinessLineThe brief
Written by software from the 1 report below.
- Indian aluminium extrusion manufacturers are operating at only 27-30 per cent capacity due to supply-chain issues and rising costs.
- Annual production has dropped significantly as imported aluminium products now dominate the domestic market.
- Industry associations are requesting the removal of the 7.5 per cent basic customs duty on primary aluminium.
- These financial pressures have led to a 30 per cent reduction in the sector's workforce over the past year.
What to watch next
- Potential government decision regarding the 7.5 per cent basic customs duty on primary aluminium
- Further reports on factory closures and workforce reductions in the aluminium extrusion sector
The points restate the reports; where one says why it matters, that is Prism's reading, not a reported fact.
Who said what
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Jitendra Chopra
President, ALEMAI
3 quotes · 1 outlet
“If the government does not act soon we are currently in a position to lock our factories and hand over the keys to the banks”
In the article
…around 12 lakh tonnes earlier, against an installed capacity of about 30 lakh tonnes. This means capacity utilisation has fallen from roughly 40 per cent to 27-30 per cent, said Jitendra Chopra, President, ALEMAI. “ If the government does not act soon we are currently in a position to lock our factories and hand over the keys to the banks ,” added Chopra who was in state capital Gandhinagar for inauguration of “Aluminium Bharat”, an exhibition showcasing aluminium products. ALEMAI represents aluminium extrusion manufacturers, including MSMEs as well as…
“When our production is just 8-9 lakh tonnes and we are importing 15-16 lakh tonnes which is double of our production then we are literally turning into a trading hub. The government is serving them on a platter”
In the article
…attributed the decline to supply-chain disruptions, energy costs and expensive raw materials. He said imports of aluminium products have risen to around 15-16 lakh tonnes, significantly exceeding domestic production. “ When our production is just 8-9 lakh tonnes and we are importing 15-16 lakh tonnes which is double of our production then we are literally turning into a trading hub. The government is serving them on a platter ,” he said. The industry is seeking removal of the 7.5 per cent basic customs duty on primary aluminium, arguing that it raises raw-material costs for domestic downstream manufacturers. “We have been asking the…
Coverage
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All filed from India
NamedIndia · Hindalco · Jindal · NALCO · Vedanta · Aluminium Extrusion Manufacturers Association of India · Aluminium Secondary Manufacturers Association · Cable and Conductor Manufacturers Association of India · Jitendra Chopra
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