- US administration imposes 10% punitive tariffs on aluminum imports
- The USA has been a key market for AMAG primary aluminum and rolled products for many years
- AMAG expects a negative impact on its operating result for 2018 running to a mid-seven-digit euro figure
On March 8, 2018, the US administration imposed a 10% punitive tariff on aluminum imports to the USA. Canada and Mexico are excluded from this decision for the time being. An application process for exemptions is being set up for US companies affected.
"The USA has been an important sales market for our products for many years. We have acknowledged the US administration's decision which will have an impact on AMAG's operating result this year running to a mid-seven-digit euro figure as things stand. The decision is not expected to affect the Canadian part of AMAG production based on current assessments in view of the exemptions in place for the time being. The opportunities and risks of the response of the USA's trading partners and any changes in the flow of goods must be monitored over the medium term," remarked Helmut Wieser, CEO of AMAG Austria Metall AG, in response to the USA's punitive tariffs on aluminum imports.
The USA is a net importer of aluminum
The consumption of primary aluminum stood at 5.4 million tons in 2017 with production totaling 0.7 million tons. The 4.7-million-ton shortfall (or 87% of domestic consumption) was made up through imports. The USA imported around 1.1 million tons of rolled products (455,000 tons or 40% from China and 164,000 tons or 14% from the EU) in 2017. Exports of rolled products in 2017 stood at around 850,000 tons, most of which went to Canada and Mexico, with around 50,000 tons sent to the EU. The USA was therefore also a net importer of rolled products in 2017 with a deficit of 250,000 tons.
AMAG business in the USA
AMAG has invested in the expansion of rolled product capacity at its Ranshofen plant.
Some of the planned sales growth to over 300,000 tons of rolled products was intended to be achieved in the USA. US sales of around 35,000 tons of rolled products are expected for 2018.
AMAG also holds a 20% interest in the Canadian smelter Alouette. Almost all of AMAG's share of production of around 120,000 tons of primary aluminum is exported to the USA.
About the AMAG Group
AMAG is a leading Austrian premium supplier of high-quality aluminium cast and flat rolled products for highly varied industries such as the aircraft, automotive, sports equipment, lighting, mechanical engineering, construction and packaging industries. The Canadian smelter Alouette, in which AMAG holds a 20% interest, produces high-quality primary aluminium while safeguarding an exemplary eco-balance. In 2017, a workforce of around 1,880 generated a turnover of 1,036 million euros with an operating result (EBITDA) of 164.5 million euros.