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Constellium warned it could cancel planned aluminum recycling expansions in Europe if policymakers fail to address a scrap shortage caused by exports to foreign markets, Reuters reported. CEO Ingrid Joerg said several recycling projects across the company’s packaging, automotive and aerospace divisions are under review, ranging in size from smaller initiatives to projects comparable with its previous €130 million ($148.8 million) expansion in France.
The European Commission recently dropped plans for an export tariff on aluminum scrap and instead proposed limiting exports through waste-shipment rules. Constellium and other European producers question whether that approach will be effective, as some non-OECD countries are seeking exemptions. The company recycles part of its production internally but also relies on external scrap supplies.
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