Reuters reported that Creditors of insolvent German aluminium plant Voerde Aluminium have voted for it to continue production at least until the end of this year while the search for a buyer continues.
Voerde's administrator said that the Voerde smelter which produces 115,000 tonnes of aluminium annually, declared insolvency in May. The plant produced just over 10% of Germany's 1.06 million tonne aluminium production in 2011.
Germany's metals industry association WVM said that the Voerde case illustrates the danger to German metal output from the country's high electricity prices. Germany's electricity costs are 50% higher than those faced by rival producers in France, Spain and Scandinavia.
Mr Frank Kebekus insolvency administrator said that a meeting of creditors decided to continue production at the plant provisionally until December 31st 2012. A decision will be made in December about continuing output beyond that date.
Mr Kebekus said that US metals group Aleris in August bought Voerde's cast house. Buyers are now being sought for the separate electrolysis and anode production units at the plant. The creditors meeting there is a good chance of finding an investor to take over the rest of the plant. Voerde's business performance has stabilized and a return to profitability was expected in the fourth quarter of 2012.
Sourced from Reuters
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