Kidričevo - Talum, the Kidričevo-based aluminium manufacturer, has not any suffered significant damage as a direct result of the ongoing crisis in Ukraine so far, said CEO Marko Drobnič at Tuesday's online forum of the Chamber of Commerce and Industry. However, he did warn of the effect of energy price hikes.

According to Drobnič, the most significant influence of the Ukraine crisis is reflected indirectly in the already problematic increases of energy prices, as Talum is the most energy-intensive company in Slovenia.

"We can only respond to that by passing on the price increase to the products or by reducing production," said Drobnič, adding that Talum's electricity bill has recently doubled to EUR 60 million, with consumption halved.

Asked whether the unsustainably high costs of electricity and gas would force Talum to temporarily halt aluminium production, he said that the company had already reacted in this way last year, as the impact of energy prices on their business was massive.

"In September, we decided to further curb our already limited production of primary aluminium, which is the most energy-intensive process. Today, we are only at 30% capacity," Drobnič said.

"If this situation continues in the second half of the year without any action at the European level, it could mean that the production of aluminium under these conditions will no longer be possible anywhere in Europe," he added.

Drobnič said that Talum was already preparing for a potential complete shutdown of primary aluminium production. He added that recycled aluminium processing takes up much less energy, but not all aluminium needs can be met by recycling alone.

As Talum uses the most energy-efficient and modern technologies, Drobnič believes that aluminium production should continue in any case, as the only alternative would be purchasing it from abroad, which would mean losing jobs and GDP in Slovenia as well.

Despite all the challenges posed the last two years, the Kidričevo-based company posted a positive operating result last year, while also continuing investment into R&D and carrying out the planned projects, added Drobnič.