Aluminium producers and processors in Germany enjoyed a positive 2011. Although growth momentum slowed slightly towards the end of the year following a good first six months, compared to the previous year there was an increase in overall production in nearly all areas. Domestic demand stabilised while there was also firm development in demand from abroad. The industry anticipates a stable economic environment for 2012.
 
“In Germany in 2011 the volume level of the previous year was again achieved, and in some cases even exceeded. The aluminium industry in Germany look back on a positive development in 2011”, explained Friedrich Brökelmann, President of the German Aluminium Industry (GDA), in Düsseldorf. “Had the situation in the aluminium industry not slowed down in the third quarter of 2011, the annual balance sheet would have looked even better”, added GDA Executive Director Christian Wellner. “In the fourth quarter, our companies forfeited some of the volume profits gained at the beginning of the year, resulting in a mild decline in some market segments”.    

Marked increase in the production of raw aluminium
In 2011 some 1.067 million tons of raw aluminium were produced in Germany, representing a production increase of 5.3 percent compared to 2010. Production of raw aluminium in 2011 consisted of 432,472 tons of primary aluminium and 634,441 tons of secondary aluminium. Comparing these results to the previous year, the increase of 7.5 percent for primary aluminium was stronger than that of secondary aluminium (3.8 percent). 

In 2011 a total of 2.443 million tons of semi-finished aluminium products were manufactured – a slight decrease (0.5 percent) on the previous year’s figures. The companies manufacture rolled products, extrusions, wires and forged components. In terms of quantity, semi-finished aluminium products represent the most important area of the aluminium industry in Germany.

In 2011 363,076 tons were produced in the further processing of aluminium in Germany, a production volume hardly changed from the year before. Further processing is divided into the areas of “foil and thin sheets”, tubes, cans and extruded components” as well as metal powder. While the production of foil and thin sheets declined by 1.6 percent, that of tubes, aerosols and impact extrusions rose by 7.8 percent. Metal powder production also rose – albeit by a more modest 5.2 percent.  

Business environment and forecast for 2012
According to GDA Chief Economist Andreas Postler, the business environment for the aluminium industry worsened in the previous six months. “The yardstick for exports was raised quite high in 2011, having a restraining effect on further growth chances. Another factor are the recessive tendencies in the Euro zone, by far the most important export market for the German aluminium industry. Only the domestic market remains for sales expansion, and even this market cannot remain permanently immune to the economic environment”. On the other hand, Andreas Postler is optimistic on expectations concerning key client industries. “Growth of four to five percent may be expected in the machine construction and electro technology industries”, he said. “In addition, the starting opportunities this year for the building industry should not be underestimated. This particularly applies to residential construction. Even for the automobile industry, which has enjoyed a marked expansion in previous years, there are good chances of being able to maintain or even exceed the high level – both in domestic production and for exports”.
 
According to Friedrich Brökelmann, “our competitive position in Europe is good and the German industry’s trust in good development on the markets is a positive aspect. Aluminium production in Germany in 2012 should be close to the high production levels of 2010 and 2011”.

	Tonnage		Year on yaer change
	2010	2011	%
Raw aluminium	1,013,615	1,066,913	5.3
Primary aluminium	402,476	432,472	7.5
Secondary aluminium	611,139	634,441	3.8
Aluminium semis	2,455,202	2,443,007	-0.5
Al and Al alloys	2,451.027	2,438.211	-0.5
Conductor material	4,175	4,796	14.9
Aluminium castings	812,229	843,725	3.9
Further Processing of Aluminium	363,622	363,076	-0.2
Foil and thin sheets	299,743	294,854	-1.6
Tubes, aerosol cans and     impact extrusions	38,596	41,622	7.8
Metalpowder	25,283	26,600	5.2

Sources: GDA, BDG, VAR and German Federal Office of Statistics; some of the data is provisional.