Aluminum manufacturer Aldel has been rescued from a third bankruptcy, and continues in a slimmed-down form. Current director Chris McNamee and his company Aloft are taking over the factory in Delfzijl from the American private equity fund York Capital. During the reorganization, 120 of the total 325 full-time jobs will be lost, but Aldel will also lose almost all of its debts.
Damco Aluminum Delfzijl (abbreviation: Aldel) was established in 1966 in Delfzijl and is one of the largest employers in Northeast Groningen. The factory melts and casts high-quality aluminum that is used, among other things, in the car industry. In 2020, Aldel booked a turnover of 135 million euros. As one of the largest energy consumers in the Netherlands, Aldel was hit hard this autumn by the sharp rise in energy prices. The factory had to shut down all ovens. Currently, only recycled steel is processed.
Read the report from Delfzijl: Melter of alumina seeks salvation in green electricity
Aldel has had a hard time in recent years. In 2013, bankruptcy was already filed because of high energy prices. Four years later, another bankruptcy followed. Private equity fund York Capital took over the company in 2017 and invested 70 million euros in new furnaces. 75 jobs were added.
The factory now faces a new problem. Due to the large electricity consumption, Aldel has to pay a lot of emission rights, with which it can reduce the CO2emissions for generating the electricity. Because the price of aluminum is determined on the world market, factories cannot pass on emission allowances in the price of their end product. Metal manufacturers in Germany and France are compensated for their emission rights, and can continue to operate. But because the schemes for Dutch companies expired in 2020 and no decision has been made for the coming years, the ovens in Delfzijl are off for the time being.
Waiting for The Hague
Much will remain the same with the takeover. The management will remain in place, as will the board. As far as managing director Chris McNamee is concerned, Aldel’s current production strategy also remains unchanged. “We are on the right track. I believe in the future of this factory, as long as the Dutch government keeps its commitments when it comes to offsetting emission rights.”
Both Brussels and The Hague have promised an EU-wide level playing field when it comes to offsetting emission rights. McNamee is concerned that the cabinet has not provided any clarity to date. “If that continues, production will disappear to France, Germany or China,” said McNamee. „There they have that CO2– no tax.”
According to trade union director Albert Kuiper of FNV Metaal, the dismissal round that was announced in September is slightly less severe than expected. “We are still looking at whether vacancies can still be filled with the current people.” The unions are also waiting for clarity from the cabinet. According to Kuiper, return arrangements have been agreed in the social plan. “As soon as the factory is allowed to open again, you will need those people again immediately. Aldel saw them leave with a heavy heart.”
A version of this article also appeared in NRC in the morning of December 10, 2021
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