MONTREAL -- The national aluminum associations’ leaders from Canada, the United States, Europe and Japan today held a meeting with industry executives and government representatives from the G7 member countries to discuss a roadmap for governmental multilateral action on global aluminum overcapacity.
Global demand for aluminum is growing and will require commensurate growth in primary smelter production, recycling and semi-fabricated aluminum products. Howver, subsidized overcapacity and other market-distorting behavior is undermining the sustainable growth of the global aluminum industry for both primary and downstream aluminum producers. It is time for G20 leaders to provide a collective and multilateral response. To initiate such process, the attendees of the Montreal Aluminium Summit defined a Roadmap to a sustainable global aluminium market that will be shared with the G7, and ultimately the G20 countries.
The Roadmap identifies China as a leader in aluminum production, mainly because of substantial governmental intervention. As China grows its overwhelming share of the market by adding new capacity upstream and downstream, enabled by state subsidies and support programs of all forms, it progressively undermines existing privately-owned competition, while inhibiting market-driven expansion outside the country. The ongoing erosion of free and fair trade of aluminum caused by China’s built up overcapacity and unruly market behavior is at stake.
To ensure a sustainable solution to these market fundamentals issues, several criteria were identified to assess the best approach to build remedies: inclusive of whole value chain, protective of fairly produced and traded aluminium, multilateral, multistakeholder, sustainable over the long term, transparent and reliable, actionable, enforceable and verifiable, wide in scope, and empowered and accountable. The clear solution emerging from the Summit is a Global Multilateral and Governmental Forum on Aluminum Overcapacity based on a robust international monitoring system.
The national aluminium associations' leaders therefore urge the G7 leaders to formally request the G20 to create this Forum and immediately establish an international monitoring system.
The Aluminium Association of Canada, The Aluminum Association, European Aluminium and the Japan Aluminium Association stand ready to support G7, G20, the OECD and other international institutions with knowledge, data and commitment to permanently resolve the global aluminium overcapacity.
"The creation of a global forum will help us to address illegally subsidized Chinese overcapacity, which is challenging aluminum companies across the value chain and around the world. The roadmap we developed today is an important catalyst for those discussions. The aluminum industry is speaking loudly and with a single voice – now is the time to address the Chinese overcapacity challenge once and for all." Heidi Brock, President and CEO of The Aluminum Association.
"For more than a decade, the Canadian aluminium industry has faced an unbalanced market. It is only through international dialogue and cooperation, through the G20 and OECD, that the equilibrium in the aluminium industry will be restored. The conclusions reached today at the Montreal Aluminium Summit is the first step in that direction." Jean Simard, President and CEO of the Aluminium Association of Canada
"We have said this many times: aluminium overcapacity in China has significant impacts on our industry and only global solutions can effectively tackle this major challenge. The Montreal Aluminium Summit has opened the debate about what we can do and how an aluminium global forum could lead to a stronger global level playing field based on transparent data and robust governance. G20 leaders should put our ideas on the table and make it happen." Gerd Götz, Director General of European Aluminium.
"It is a memorable success that this conference adopted a roadmap for a global forum. We expect the forum will provide more transparency in the global aluminium industry. It is our great pleasure that our association could align with other countries associations to tackle this shared challenge." Yoshihisa Tabata, Executive Director of Japan Aluminium Association.
About The Aluminum Association
The Aluminum Association represents aluminum production and jobs in the United States, ranging from primary production to value added products to recycling, as well as suppliers to the industry. The Association is the industry's leading voice, providing global standards, business intelligence, sustainability research and industry expertise to member companies, policymakers and the general public. The aluminum industry helps manufacturers produce sustainable and innovative products, including more fuel-efficient vehicles, recyclable packaging, greener buildings and modern electronics. In the U.S., the aluminum industry creates $174 billion in economic activity. For more information visit http://www.aluminum.org, on Twitter @AluminumNews or at Facebook.com/AluminumAssociation.
About the Aluminum Association of Canada
The Aluminum Association of Canada (AAC) is a non-profit organization representing three Canadian world-class aluminum producers: Alcoa, Alouette, and Rio Tinto operating ten smelters in Canada, nine of which are in Quebec, and employing over 8,000 workers and generating over 5.5 billion US$ in annual deliveries. For more information, visit http://www.aluminium.ca or Twitter @AAC_aluminium.
About European Aluminium
European Aluminium, founded in 1981 and based in Brussels, is the voice of the aluminium industry in Europe. We actively engage with decision makers and the wider stakeholder community to promote the outstanding properties of aluminium, secure growth and optimise the contribution our metal can make to meeting Europe's sustainability challenges. Through environmental and technical expertise, economic and statistical analysis, scientific research, education and sharing of best practices, public affairs and communication activities, European Aluminium promotes the use of aluminium as a material with permanent properties that is part of the solution to achieving sustainable goals, while maintaining and improving the image of the industry, of the material and of its applications among their stakeholders. Our 80+ members include primary aluminium producers; downstream manufacturers of extruded, rolled and cast aluminium; producers of recycled aluminium and national aluminium associations are representing more than 600 plants in 30 European countries. Aluminium products are used in a wide range of markets, including automotive, transport, high-tech engineering, building, construction and packaging. For more information visit www.european-aluminium.eu.
About Japan Aluminium Association
Japan Aluminium Association (JAA) was established in 1947 (the former names were the Light Metal Rolling Association and the Light Metal Smelting Association of Japan). Now, around 140 companies join in JAA, their business fields are various from aluminium rolling, extruding, fabricating and trading etc. JAA represents Japanese aluminium industry and plays a very important role for such as in public relations (including government relations), statistics and standards, and supports member companies in various areas ranging from research & development, energy & environment, safety & health and so on. Through these activities, JAA tries to enhance values and sustainability of aluminium. For more information visit http://www.aluminum.or.jp/english/