Aluminium extrusion industry body alleges 28 units shut, 5K jobs lost

ALEMAI claims closure of 28 aluminium extrusion units and the loss of 5,000 jobs in the last two years, blaming free trade agreements (FTAs) and rising import dependence for the industry's struggles

Free trade agreements (FTAs) and rising import dependence have led to the closure of aluminium extrusion factories in India, causing thousands of job losses, according to Jitendra Chopra, President of the Aluminium Extrusion Manufacturers Association of India (ALEMAI), an industry body with 250 members across the country.

 

“Micro, Small, and Medium Enterprises (MSMEs) are already getting impacted because of the FTA with the Association of Southeast Asian Nations (ASEAN). Around 28 micro-enterprises have been closed in the last two years, and 5-7 medium enterprises are already on the verge of closing,” he said. “Between 4,000 and 5,000 people directly employed in these units have lost jobs.”

   

Chopra was speaking to Business Standard on the sidelines of the curtain-raiser for ALUMEX 2025, an aluminium extrusion exhibition event.

 

India’s aluminium extrusion industry has an installed capacity of 3 million tonnes per annum but is operating at just 1.2 million tonnes. Imports, driven by price differences, FTA concessions, and duty-free access through multiple HSN codes, exceed 1.5 million tonnes annually, said Chopra. “Unless safeguards are introduced, MSMEs will continue to face existential challenges.”

 

The trade body said in a statement that if the government supports MSMEs by removing aluminium extrusion downstream value-added products from FTAs and ensures fair safeguards against cheap imports, India can emerge as a global leader in aluminium extrusion.

 

“The government should focus on value-added aluminium products and review FTAs,” Chopra said, adding that trade concessions have disproportionately hurt smaller manufacturers. He also said the recently signed FTA with the United Kingdom (UK) may benefit large aluminium manufacturers but will not benefit MSMEs.

 

Chopra also alleged policy inconsistencies in the demand generation of aluminium. “Domestic consumption needs to be pushed up, but various state governments are promoting crude oil-based Unplasticized Polyvinyl Chloride (UPVC) products, which is counterproductive to increasing per capita consumption of aluminium.” He added that since India has abundant bauxite reserves, boosting aluminium usage in construction and infrastructure would reduce reliance on UPVC products.

 

The association has called for stronger safeguards and better access to raw materials. “We also need to increase billet production from companies such as National Aluminium Company (NALCO) to secure raw material supply,” Chopra said.

 

On US tariffs, Chopra underlined that the industry cannot depend on external relief. “The US tariffs have had a ripple effect on our industry, but the way to mitigate their impact is not to wait for external relief. Instead, we must grow our domestic market.”