The Swiss aluminum industry grapples with a downturn, feeling the ripple effects of Europe’s economic slowdown
Keystone/VALENTIN FLAURAUD
The Swiss aluminum industry sold less last year. The export-oriented industry felt the effects of the economic slowdown in Europe, particularly in the second half of the year.
Production at Swiss pressing and rolling mills fell by 1.8% in 2023 compared to the previous year, as reported by the Swiss Aluminum Association (alu.ch) on Tuesday. The sales volume amounted to 206,767 tons, which is almost 4,000 tons less in absolute terms than in 2022.
“With the exception of the flourishing construction industry in Switzerland, all of our key user markets in Europe came under pressure from summer 2023,” said Association President Roland Hörzer in the press release.
Orders were canceled or no longer placed, and as a result, some member companies had to register for short-time work.
Automotive Industry With Weak Demand
According to the report, demand from the automotive industry in particular remained significantly below the previous year’s figures. Contrary to expectations, there was also less demand for electric cars, which led to a “painful” slump in orders for Swiss suppliers as a chain reaction.
The construction sector is likely to continue to provide positive impetus, and demand is also expected to pick up in the aviation industry.
In contrast, customers from the mechanical engineering, semiconductor and medical technology sectors are continuing to adopt a wait-and-see attitude.
At the same time, however, customers are also concerned about a possible lack of capacity should the economy pick up again. According to Marcel Menet, Managing Director of the association, this sometimes leads to the “bizarre situation” that fewer orders are being placed, but information about capacities is being sought again and again.
This behaviour indicates that the boom and crisis periods will be close together this year.
Long-term Prospects
The association continues to assess the long-term prospects for lightweight aluminum constructions “Made in Switzerland” as good.
There is further potential, particularly in areas such as electromobility, packaging solutions and clean tech. Thanks to aluminiums low weight combined with high strength and recyclability.
According to the company, around 8,000 people are employed in the sector.
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