Reuters: Bankruptcy News: Germany's insolvent Voerde Aluminium to continue production

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Germany's insolvent Voerde Aluminium to continue production Sep 27th 2012, 14:53 HAMBURG, Sept 27 | Thu Sep 27, 2012 10:53am EDT HAMBURG, Sept 27 (Reuters) - Creditors of insolvent German aluminium plant Voerde Aluminium have voted for it to continue production at least until the end of this year while the search for a buyer continues, Voerde's administrator said on Thursday. The Voerde smelter, which produces 115,000 tonnes of aluminium annually, declared insolvency in May. The plant produced just over 10 percent of Germany's 1.06 million tonne aluminium production in 2011. Germany's metals industry association WVM said the Voerde case illustrates the danger to German metal output from the country's high electricity prices. Germany's electricity costs are 50 percent higher than those faced by rival producers in France, Spain and Scandinavia, the WVW estimates. A meeting of creditors decided to continue production at the plant provisionally until Dec. 31, 2012, insolvency administrator Frank Kebekus said in a statement. A decision will be made in December about continuing output beyond that date, he said. U.S. metals group Aleris in August bought Voerde's cast house. Buyers are now being sought for the separate electrolysis and anode production units at the plant, Kebekus said. Kebekus told the creditors meeting there is a "good chance" of finding an investor to take over the rest of the plant, he said. Voerde's business performance has stabilised and a return to profitability was expected in the fourth quarter of 2012, Kebekus said. Recent German energy policy decisions had improved the prospects of selling the plant, he said. The German government said on Aug. 1 it will exempt heavy industry, including metals producers, from an environmental tax in exchange for guarantees that firms boost their energy efficiency. Link this Share this Digg this Email Reprints

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