This slump was primarily due to the closings and production cuts on the customer side, it said. Sales in the aluminum industry came to a complete standstill during the first total lockdown in the user markets of transport – especially aviation – mechanical engineering and electronics, as well as jewelry and watchmaking.
However, demand rose faster than expected, especially from the automotive industry. After the summer break, an order situation was observed again at a normal level. The fact that the situation has worsened again since autumn with numerous (partial) lockdowns has no longer had an exceptionally negative effect on production in the Swiss aluminum industry, the association said.
Thanks to the short-time work and bridging loans from the federal government, no member of the association has made any major layoffs.
Uncertain outlook
However, the pandemic would have intensified cutthroat competition, pressure on margins and price wars for the Swiss aluminum industry, for example due to cheap imports from China and overcapacities, such as in aviation. In addition, the leading representatives of the aluminum industry viewed the future development of the important customer segment construction with skepticism, as it is said.
For the current year, the board members of the association expect a slight recovery in production capacity. However, the industry expects highly volatile developments, depending on the further measures to contain the pandemic.
57 aluminum processing companies are united in the Swiss Aluminum Association.
tv / cf
(AWP)
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