Aluminium Extrusion Industry Seeks Govt Safeguards to Revive Domestic Units

The aluminium extrusion industry on Thursday sought safeguards from the government to revive underutilised domestic units as free trade pacts with several Far East countries, which allow duty-free imports, affect the viability of nearly 500 home-grown entities.

The Aluminium Extrusion Manufacturers Association of India (ALEMAI) advocated the adoption of quality and standards-compliant materials among its members and across the industry, especially in light of the growing challenges posed by cheap and substandard imports.

"The sector has...raised alarms over the impact of Free Trade Agreements (FTAs) with several Far East countries, which allow duty-free imports and continue to affect the viability of nearly 500 domestic extrusion units. ALEMAI has urged the government to consider safeguards to revive underutilised domestic units," it said in a statement.

"The total installed production capacity in India is 3.5 million tonnes per annum. However, the aluminium extrusion industry can utilise only around 2 million tonnes. The remaining 1.5 million tonnes is imported. This is primarily because of the price difference and lack of enforcement of standards. By voluntarily implementing BIS certification, we are taking responsibility for raising product quality and reducing our reliance on low-cost imports." The aluminum extrusion industry is a significant manufacturing sector focused on shaping aluminum into various profiles and shapes through a process called extrusion. Aluminum extrusion is a process where aluminum alloy is forced through a die, a shaped opening, to create a desired profile. This process allows for the creation of complex shapes with consistent cross-sections, making it ideal for various applications.

The India aluminum extrusion market size was valued at 1.3 billion dollar in 2019, and is projected to reach 2.5 billion dollar by 2027.

"The total installed production capacity in India is 3.5 million tonnes per annum. However, the aluminium extrusion industry can utilise only around 2 million tonnes. The remaining 1.5 million tonnes is imported. This is primarily because of the price difference and lack of enforcement of standards. By voluntarily implementing BIS certification, we are taking responsibility for raising product quality and reducing our reliance on low-cost imports," ALEMAI President Jitendra Chopra said.

Welcoming recent government actions, such as the imposition of anti-dumping duties on solar imports from China, Thailand and Vietnam, ALEMAI also called for further policy support, especially on the issue of technical manpower.

"One of the biggest issues we are facing is the visa restrictions on Chinese engineers who are essential for the installation and maintenance of imported machinery. Since 99 per cent of our machinery comes from overseas, particularly China, this delay has hampered production capacity over the past five years. There have been some relaxations of late, but broader easing is necessary if we are to meet future demand," he added.