The head of the aluminium group, which generated USD 7.3 billion in revenue in 2024, is urging that the material be exempted from the regulations due to take effect in 2026, alongside steel, cement, hydrogen and fertilizers. Otherwise, “massive adjustments will be necessary,” he told AFP, arguing that “Europe is not producing enough aluminium.”
“It’s important to acknowledge that anything that helps advance decarbonization is positive. But from our perspective, the CBAM is having exactly the opposite effect on the aluminium sector,” he says.
For Jean-Marc Germain, this new European instrument is a textbook case of “the road to hell being paved with good intentions.”
Decline in European competitiveness
He argues that the mechanism will directly drive up costs for European producers. “Even if we assume that import compensation works, it still means that everything we try to export becomes more expensive. I manufacture products for the aerospace and automotive industries, as well as packaging… All of these will cost more, and that will be reflected in the prices I charge my customers. When they export, they will be less competitive than before. And on top of that, we are raising electricity costs — which are already three times higher in Europe than in the countries we compare ourselves to, such as China or the United States.”
As a result, European industry would inevitably see its competitiveness decline, meaning “reduced exports,” “fewer customers” and job cuts.
Risks of circumvention
Constellium’s CEO also argues that border mechanisms can be easily bypassed.
“For example, China could claim that the aluminium it exports to Europe is produced with hydropower, while keeping coal-based aluminium for its own market. It could also route products through a third country or apply further processing. And what would that change in terms of emissions? Absolutely nothing. It doesn’t reduce them at all,” he says.
Even though the company is performing well in Europe — thanks to its “high value-added products,” “strong teams,” and “R&D” — this new mechanism is, in Jean-Marc Germain’s words, “yet another bag of stones we’re being asked to carry.”
Amid rising global competition, this extra cost — “a few million in 2026, and more in 2027” — could undermine the company’s position.
Jean-Marc Germain will retire from his role as Constellium CEO at the end of 2025, after nearly a decade of leadership, he will be suceeded by Ingrid Joerg, currently Chief Operating Officer, on January 1, 2026.
