Industry Analysis & Industry Trends
The Aluminium Production industry produces aluminium through smelting and the recycling of scrap metals. It also handles basic aluminium processing. Over the past 10 years, the industry's primary aluminium production capacity has severely declined. 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 all buffeted aluminium producers in recent years. Industry revenue is expected to decrease by 1.4% in 2016-17 to reach £1.3 billion... purchase to read more
Industry Report - Industry Investment Chapter
The Aluminium Production industry displays a moderate level of capital intensity. Even though the industry relies heavily on large-scale machinery and equipment at each stage of the production process, these are supervised and operated by employees. Wage expenditure is expected to account for 9.8% of industry revenue in the current year, while depreciation is expected to account for 2.9%. As a result, IBISWorld estimates that industry operators spend an average of £3.39 on labour for every £1.00 spent on capital.
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