Artem Asatur, co-chairman of the Association, talks about functions of aluminium associations in the world and why it is important to be an active player on the international arena uniting to solve global problems jointly and support export activities.
Instrument of consolidation
A country, where aluminium companies are not united in a way into an industrial organisation, can hardly be called the country with a developed aluminium industry. ‘This is the most efficient way to defend industrial interests in the world practice,’ explains Artem Asatur. ‘In many countries authorities need such a partner in a dialog to shape and fulfil industrial development plans.’ Today there are dozens of associations in the world. But, if you count only those, which are engaged in the international cooperation on the platform of the International Aluminium Institute, there will be about thirty of them.
The main function of all associations is to consolidate a position of the aluminium industry, bring it to authorities, which form a national industrial policy. Priorities are trade policy, technical regulation and standardisation. One of the main purposes of associations is promotion of aluminium in the economy. Is there cooperation between associations? And are there joint instruments allowing to defend common interests effectively?
‘Yes, there is such a cooperation,’ says Artem Asatur. ‘It happens on the platform of the International Aluminium Institute. As a rule, the biggest associations meet twice a year to discuss the most topical issues affecting interest of the aluminium industry of all countries.’ .
Regular meetings of representatives of the association are a tool which makes it possible to solve challenges. These forums shape a common position and a common approach to certain issues faced by all global aluminium associations.
Global challenges
What are the current global challenges faced by the aluminium industry? Artem Asatur splits problems urgent for the global aluminium industry into two main blocks.
The first one is unfair business practices related to the support of redundant, i.e. inefficient capacities in some countries of the world, which are far from the demand dynamics. This causes overproduction and excessive stocks of aluminium products on the global markets at artificially reduced prices. More and more often trade protective measures, redistributing trade flows towards Russia, become a response, thus deteriorating the situation in our market. Aluminium associations of Russia, the EU, the USA and Japan work jointly on the problem, among other things, using experience of the Global Forum in relation to redundant capacities in the steel industry.
The second block of issues relates to the climate and the sustainable development. An advantage of Russian aluminium is its low carbon footprint. Amidst a global close focus of the climate change it creates an additional competitive advantage for the domestic aluminium goods. ‘It is critical for us to take an active part in a dialog with other countries to explain a role of Russian low-carbon materials and products and not to allow any carbon protectionism measures against them,’ emphasises the co-chairman of the Aluminium Association. The Russian Aluminium Association believes its main job on the international arena is to develop an export potential of domestic companies and to raise foreign investments and attract technologies to our aluminium industry. The Association makes every possible effort to facilitate direct contact between companies inside it and their potential foreign partners by arranging various events and business missions.
Speaking of this side of the efforts taken by the Association, Artem Asatur reminded of an exhibition to take place in Dusseldorf in October – last year at the initiative of the Association it was made part of a list of activities supported by the Russian Export Centre. Participation in such an event allows entering the global market, present oneself, meet potential buyers and study foreign experience.
Size matters
The American and European Aluminium Associations are the largest of all global associations in terms of the number of their member companies. However, it should be noted that the latter one unites not only companies, but also national associations of EU member states.