EGA says EU aluminium scrap U-turn could affect German expansion

By Tom Daly

BUDAPEST, Sept 16 (Reuters) - Emirates Global Aluminium is "very disappointed" by the EU's abandonment of a proposed export duty on aluminium scrap, its chief financial officer said, adding that the move would affect decision-making for a planned recycling expansion in Germany.

The EU earlier this month withdrew the proposal for a 15% export duty on aluminium scrap — designed to stop so much of the material leaving the bloc — over concerns it could complicate the final signature of a free trade deal with India, sources familiar with the discussions told Reuters.

Industry lobby European Aluminium has already expressed its "profound shock, disappointment and anger" at the move.

"I think a lot of people were very disappointed about what happened the other day, including ourselves," EGA finance chief Pal Kildemo told the Fastmarkets International Aluminium Conference in Budapest on Wednesday.

"We put a lot of capital... on the ground to take part in the larger recycling rates in Europe. And when this becomes a part of bigger trade politics, it's unfortunate for our industry."

EGA last week announced the completion of its purchase of an 80% stake in Eco Green, which collects, sorts and distributes more than 70,000 tons per year of recycled aluminium in Italy.

In 2024, it bought German recycler Leichtmetall, and last December announced a six-fold capacity expansion at the unit, adding 110,000 tons per year of scrap sorting capacity and 150,000 tons per year of melting and casting capacity.

EGA still has to make a "build decision" for that expansion, Kildemo told Reuters.

"The less uncertainty you have, the easier it is to make the decision. So it will influence the decision-making process," Kildemo said. "I can't say if the project will go ahead or not without (the duty), but it's a net negative."

"In general, the industry is a bit disappointed," Kildemo said, adding: "It's not the end of the discussion."

(Reporting by Tom Daly; Editing by Jan Harvey)