Slovalco Seeks Government Support for Restarting Aluminium Production

The Slovalco aluminium plant in Žiar nad Hronom, known for its environmentally friendly production methods, has faced a shutdown for over a year due to soaring electricity prices during the 2022 energy crisis. This led to the curtailment of primary aluminium production and a significant reduction in the workforce. Despite the plant's long history of nearly 70 years, it was forced to halt operations, marking the end of aluminium production in the region.

Prior to the production halt, the Voice Party, led by Peter Pellegrini, pledged to facilitate the restart of operations once in government. However, the plant continues to face challenges despite a decrease in electricity prices to pre-crisis levels. Milan Veselý, General Director of Slovalco, highlighted the need for stable business conditions and predictable electricity and raw material prices for about a decade to consider restarting production. The company also cited insufficient state compensation and the need for increased compensation levels comparable to other EU countries as factors contributing to the shutdown.

The new government has engaged in discussions with Slovalco to explore supportive measures in line with European regulations. While details of potential solutions are still under consideration, the Environment Ministry has proposed increasing the industry's carbon rebate and ensuring all resources from emission permits are directed to the industry. This approach aims to provide more financial support for decarbonisation efforts within the industry.

Slovalco's modernised facilities have historically produced aluminium with significantly lower emissions compared to the global average, making it a key player in the environmentally regulated environment. The company's future, including the potential restart of aluminium production, remains contingent on achieving a favorable agreement with the government and securing stable and predictable operating conditions.