The owners of the United Kingdom's only aluminium smelter say high energy costs are preventing them from increasing production at their Fort William site, despite rising global demand. Production is currently running at about 70 percent capacity, as importing additional electricity at current market rates would not be cost effective.

Aluminium prices have climbed to a four-year high following conflict involving Israel and Iran and airstrikes on major Middle East producers. Buyers have approached the Fort William plant for additional supply, but management says volatile energy prices make it 'very difficult' to plan ahead or expand output.

The smelter, owned by GFG Alliance, relies on power from its own hydroelectric scheme but would need to import electricity to boost production beyond current levels. Management argues that long-term energy agreements lasting 10 to 20 years would provide stability and allow the business to take greater advantage of domestic energy resources.

The plant has capacity to produce 48,000 tonnes of aluminium annually and employs just over 200 workers. About half of its output is exported to the United States, where recent tariff changes have created new opportunities, although previous expansion and recycling projects have been delayed.