A new sheen: Revenue is likely to be boosted by rising aluminium prices and export demand

The Aluminium Production industry produces aluminium through smelting and the recycling of scrap metals. It also handles basic aluminium processing. Over the past decade, the industry's primary aluminium production capacity has declined considerably. Two smelters, located in Anglesey and Lynemouth, closed in 2009 and 2012 respectively. This left just one operational primary smelter in Lochaber, Scotland, which was operated by Rio Tinto until the end of 2016 when it was acquired by Liberty House, an international commodities business. Volatile metal prices, rising energy costs and lacklustre demand from downstream markets have buffeted aluminium producers in recent years. As a result of these challenges, revenue is projected to contract at a compound annual rate of 0.8%...read more.

Industry Statistics & Market Size
Revenue
£1.4bn
Annual Growth 14-19
-0.8%
Forecast Growth 19-24
Profit
Employment
3,651
Businesses
125

Industry Threats & Opportunities

  • Stringent EU emissions regulations have driven out several firms in energy-intensive industries
  • Plans to upgrade the UK's only primary smelter and open a new manufacturing site have commenced
  • Residential construction activity is forecast to increase, supporting demand for aluminium
  • Industry Report - Industry Locations Chapter

    The MidlandsThe West Midlands accounts for the highest proportion of establishments, with an estimated 24.1% located in the region. A key reason for this is its positioning. Most firms operate remelting and recycling facilities rather than primary production facilities, so good access to scrap metal is essential. Considering this, the West Midlands is ideally located for two reasons. Firstly, it is a prime location for manufacturing firms, including many automotive firms, which provide aluminium remelt facilities with a large volume of scrap metal. Transport industries are also the industry's largest single market. Sec...purchase to read more.

    Additional Insights for the Aluminium Production Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Aluminium Production Industry are

  • Ability to accommodate environmental requirements
  • Access to required utility infrastructure
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Demand from light metal casting and World price of aluminum in the Aluminium Production industry impact industry performance..

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    What's in this report

    What is the Aluminium Production Industry?

    Firms in this industry smelt aluminium from alumina, recycle scrap aluminium and produce basic aluminium shapes such as plates, bars, foil and wire. The production of aluminium alloys and rolled aluminium products is included in the industry. Operators also sell unwrought aluminium.

    Industry Products
  • Unwrought primary aluminium
  • Unwrought secondary aluminium
  • Basic shapes
  • Aluminium oxide
  • Industry Activities
  • Smelting primary aluminium
  • Recycling aluminium
  • Manufacturing basic aluminium shapes
  • Producing aluminium alloys
  • Manufacturing unwrought aluminium
  • Producing alumina
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from light metal casting
  • World price of aluminum
  • Demand from light metal packaging manufacturing
  • Total value of construction

  • Current Performance
  • International trends
  • Primary production
  • Consolidation, closures and profit
  • Chart: Revenue Growth

  • Industry Outlook
  • Production dulled
  • Domestic demand
  • Buffing up
  • Chinese competition
  • Cushioned by scrap
  • Marginal recovery
  • Table: Aluminium Production Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Aluminium Production Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Light Metal Casting
  • Metal Door & Window Manufacturing
  • Light Metal Packaging Manufacturing
  • Motor Vehicle Manufacturing

  • Key Selling Industries
  • Electricity Production

  • Products & Services
  • Basic shapes
  • Unwrought secondary aluminium
  • Unwrought primary aluminium
  • Aluminium oxide
  • Chart: Aluminium Production Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Transport manufacturing industries
  • Construction industries
  • Equipment manufacturing industries
  • Packaging industries
  • Other
  • Chart: Major Market Segmentation for the Aluminium Production Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Aluminium Production

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Aluminium Production Industry

  • Industry Globalization
    Novelis UK Limited, Norsk Hydro ASA,
  • Table: Novelis UK Limited - financial performance
  • Table: Norsk Hydro ASA - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Aluminium Production Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Aluminium Production Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Dross
  • The mass of solid impurities that floats to the surface of a molten metal.
  • Primary Aluminium
  • Aluminium manufactured by smelting alumina.
  • Secondary Aluminium
  • Aluminium that has been recycled by being melted down.
  • Smelter
  • An industrial plant used to produce a metal from its ore.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Aluminium Production market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Aluminium Production:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Aluminium Production market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Aluminium Production, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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