Delfzijl Aldel aluminum producer fires around 175 of its 200 employees. The metal factory has been closed since the beginning of September because it became impossible to continue producing profitably due to high energy prices. Now it continues with around 25 employees.
The 25 people are needed to keep the company in so-called pilot mode, says CFO Eric Wildschut.
By stopping production in a controlled manner, it should be possible to restart quickly when conditions improve. According to Wildschut, such a fresh start is only possible if gas prices fall structurally or if the government provides support to the company. “We have been asking for government support for a long time. For three years we have been carrying out a sustainability project that is not moving forward now,” he says.
It shocks Wildschut that almost all other EU countries have already promised business support this year due to the energy crisis. According to Wildschut, the support that the government has promised to small and medium-sized enterprises and large consumers of gas and electricity on the day of the budget comes very late.
After production was stopped, Aldel’s staff went on strike to keep a social plan. This ended with an earlier round of layoffs which was a result of high gas prices. The actions ended after unions compromised an austere package, with Aldel vowing to also pay severance pay in the event of bankruptcy. “A unique date,” CNV reported last week.
According to Wildschut, bankruptcy is not likely now. For example, there are many commitments from Aldel’s financiers, including billion-dollar commodities company Glencore.
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