NZ aluminium extruders seek recycling protection as 109% import surge threatens sector

NEW ZEALAND – New Zealand’s aluminium extrusion industry has applied for a safeguard investigation as hollow extrusions imports rose 109% while domestic production fell 28%, with the sector warning that billions in economic activity and 5,000 jobs are at risk without urgent action on recycling and local manufacturing.

The Aluminium Extruders Association of NZ applied for the investigation on 27 May, with Commerce Minister Cameron Brewer initiating the probe. 

The Ministry of Business, Innovation and Employment must report by late September. 

Unlike dumping cases, the safeguard route does not require proof of below-cost overseas sales, only that a surge in imports is causing serious injury to domestic industry. 

ALENZ chief executive Nick Collins stated that speed was the main reason the industry chose the safeguard route, though the industry has been seeking a provisional duty to slow imports while the investigation continues.

Recycling and Circular Economy Opportunities Undermined by Import Surge

The decline in domestic aluminium extrusion production from 39,500 tonnes in 2022 to 28,400 tonnes in 2025 represents a significant loss of recycling capacity for New Zealand. Aluminium is infinitely recyclable without loss of quality, and recycling aluminium requires up to 95% less energy than primary production. 

New Zealand’s aluminium recycling sector has historically processed scrap from construction, transport and packaging sectors, turning it into high-value extrusion products.

However, the import surge is undercutting the economics of domestic recycling operations. Industry evidence showed imported hollow extrusions arriving at around US$4,000 per tonne, while local manufacturers paid more for raw aluminium billet, making it difficult for recyclers to compete.

Pricing Pressure and Safeguard Investigation

Imports comparable to locally manufactured products accounted for 20-23% of the domestic market between 2022 and 2025, rising to over 25% in early 2026 and reaching almost 35% in July alone. 

The average landed value of hollow extrusion imports fell from NZD 10,000 (US$5,920) per tonne to NZD 7,780 (US$4,600) per tonne, while aluminium billet costs peaked around NZD 6,810 (US$4,030) per tonne. 

The industry supports more than 5,000 jobs and generates around NZD 6.3 billion (US$3.7 billion) in economic activity. 

New Zealand currently has no tariff or anti-dumping duty on aluminium extrusions, while the US has imposed 50% tariffs and the EU’s safeguard protection has risen to 50%. MBIE is expected to report to the minister by late September.

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