Due to continuous disruptions related to the West Asia issue, India’s aluminum extrusion industry has drastically decreased production, according to the Aluminium Extrusion Manufacturers Association of India.
A significant reduction in operations is reflected in the monthly output, which has decreased from approximately 1 lakh tons to 50,000–60,000 tonnes. Production has significantly decreased annually compared to the previous average of 1.2–1.3 million tons.
Despite having an installed capacity of 4.2 million tons, ALEMAI claims that the sector is experiencing a 40–50% reduction in production. Supply chain interruptions and energy limitations resulting from geopolitical conflicts in West Asia are the main causes of the decline.
The region provides almost half of the industry’s raw material supplies, and some ships are currently experiencing delays in unloading, which further affects operations.
Industry representatives observed that utilization levels are well below capacity, indicating that the industry is still under stress. In order to address bottlenecks and minimize disruption, the government is keeping a close eye on the situation and holding interministerial talks.
The current crisis emphasizes how susceptible industrial supply lines are to worldwide geopolitical shifts.
Source – The Economic Times
