INDUSTRY NEWS
Decarbonisation is coming and UK aluminium needs to be ready
ROSS HARTSHORN , TECHNICAL PRODUCTION DIRECTOR , GARNALEX
Back in December , it was widely reported that the UK Government will implement an import levy on carbon to drive its Net Zero Strategy and the decarbonisation of the union forward . It ’ s expected to come into effect by 2027 , so now , the spotlight is on industry – particularly importers of carbon intensive products such as iron , steel , ceramics , glass , hydrogen , and aluminium .
The proposed levy is broad , as there are many elements of decarbonisation to consider . It ’ s not just about importing goods into the UK , it ’ s also about reducing carbon leakage ( where strict regulations in one country have a negative impact on another country ) and the gap between the carbon price applied in the UK versus that imposed in the country of origin .
In some ways , the news of this levy is not a surprise , and many in industry will have known this was coming in some shape or form for many years . Not all companies will be able to adapt to the new requirements as their supply chain is built upon the import and export of materials . When Garnalex was formed in 2018 , a key part of our mission centred on sustainability .
So , what precisely does this mean ?
At Garnalex , sustainability means more to us than simply the materials we use . It ’ s an ethos that we embrace as a manufacturer to ensure the long-term security of our supply chain and enables us to proudly fly the Made in Britain flag . It ’ s about sustainable processes and business practices , not simply a PR or CSR ( Corporate Social Responsibility ) gimmick using greenwashing tactics .
For instance , we source all of our aluminium from within the UK . We do this because it reduces the number of miles
the raw material travels before it reaches us ( keeping our carbon footprint low ); it increases our agility as a business , and it is another way for us to support UK manufacturing . The benefits to our customers are two-fold ; there are no long shipping delays or expensive import taxes .
Another aspect of our operations that helps us to maintain the agile supply of extruded aluminium is recycling . Where does this fit with decarbonisation , you might ask ? Well , at Garnalex , we recycle any aluminium offcuts that cannot be used . We send it back to our supplier , who in turn melts it down so it can be reset and reused , which is part of our closed-loop manufacturing process .
This approach trickles down to every aspect of our business operation . We ’ re proud Sheerline is more than just a stockist – it ’ s a customer ’ s one-stop provider of whole-house aluminium solutions that are designed , extruded , moulded , painted , and assembled in-house .
What does the future hold for the aluminium industry ?
Based on the latest announcement from the UK government , it ’ s clear decarbonisation is going to become an increasingly important issue for UK manufacturers in the coming years , which means they need to prepare now . It ’ s business as usual for us because we ’ ve embraced a sustainable ethos and ensured it is woven into the fabric of our organisation .
We ’ ve tried to future-proof both our products and our organisation as best we can in terms of new and evolving legislations , the economic climate , and the context of UK manufacturing , to help us retain our competitive advantage without losing sight of our customers , whether they ’ re fabricators , installers , or homeowners .
Fabricators within the aluminium industry must look at their supply chain with a critical eye to look for weak points , challenges , or issues that may pose a risk to their businesses . They must carefully look at who they are sourcing aluminium systems from to determine if it will still be cost-effective to use this supplier in the coming years , once these new levies are applied .
Business leaders should be taking the time to sit down now , and review their supply chains to determine if they could survive on smaller margins because of increased import fees or carbon costs , or consider moving to UK based suppliers to maximise the opportunities to thrive . Organisations that cannot meet these new challenges face the prospect of being left behind and contending with import fees .
www . garnalex . com 01332 978 000
16 MARCH 2024 CLEARVIEW-UK . COM