Page 71 from: New issue out now!
non-ferrous
Pandemic throws markets
into confusion
dramatic pullback of less than 10%
which would rival the worst quarterly
contractions in the country’s economic
history.
BUSINESS BLUES
The shares of Hamburg-based Aurubis
illustrate the uncertain times. A price of
over EUR 50 in mid February was down
at EUR 32 a month later but had
climbed back over EUR 40 at the time
of writing. In late March, Ceo Roland
Harings reported on the company web-
site that coronavirus was affecting
almost all areas of life. ‘The pandemic
has triggered worries, uncertainties,
fears, and hardships worldwide and has
cost many lives already,’ he said. ‘It
poses new challenges for all of us, chal-
lenges that can only be overcome with
joined forces. We want to maintain
operations in our facilities and uphold
the high level of quality in production.’
Boliden’s Tara zinc mine, the largest in
Europe, briefly stopped production
because of national restrictions
imposed by the Irish Government on 28
March. But it resumed on 2 April follow-
ing dialogue between the authorities
and union representatives. Boliden
acquired the mine near Navan, County
Meath in 2004. Since mining began in
1977, more than 85 million tonnes of
ore have been extracted.
The outlook for the coming weeks is
subdued. A survey of VDM members
showed that almost all companies
expect their business to weaken signifi-
cantly in the coming weeks. Many metal
recycling companies have introduced
short-time working since April or are
sending their employees on vacation.
Overall, business will likely continue, but
it will be greatly reduced in scope.
71recyclinginternational.com | May/June | 2020
US GOVERNMENT 1-0 NOVELIS
Novelis lost out in a legal challenge to the US
Government over the proposed US$ 2.6 billion (EUR 2.4
billion) acquisition of the Aleris Corporation, based in
Cleveland, Ohio. The Justice Department had opposed
the move, saying it was concerned about competition in
the market for aluminium auto body sheet. Novelis’
legal case went to arbitration, said to be the first of its
kind. The arbiter decided that aluminium and steel are
not in the same relevant product market and ruled that
Novelis must divest Aleris’s entire aluminium auto body
sheet operations in North America and reimburse the US
department for fees and costs incurred.
‘Today’s decision is a victory for automakers and
American consumers and taxpayers and will preserve
competition in the market for aluminium auto body
sheet,’ said assistant attorney general Makan Delrahim.
‘As demonstrated in this case, arbitration has the poten-
tial to be a powerful dispute resolution tool in the right
circumstances.’
As a result of the ruling, Novelis must divest Aleris’ plant
in Lewisport, Kentucky but is allowed to close the acqui-
sition of the group prior to divesting those assets. It also
requires European Commission approval over the Aleris
plant in Duffel, Belgium.
Steve Fisher, president and ceo of Novelis, said the deci-
sion ‘ignores the reality of the automotive body sheet
market and the competition we have faced against steel
for years’. He added: ‘Aluminium remains the material of
choice for our customers and we are going to continue
to provide them with the innovative, lightweight and
sustainable solutions they demand.’
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70-71-72-73_manonferrous.indd 71 15-04-20 15:33
