Colin Davies, Alfed President, said the government seemed intent on driving through an unachievable 'Green Agenda', aiming for 80% energy savings by 2050.

Speaking at Alfed's annual dinner in London, UK, Mr Davies said this would lead to further lack of investment, company closures and carbon leakage.

“We need energy reduction targets which are achievable, within a Climate Change Agreement which is structured to reward those who meet sensible and reasonable energy reduction targets.”

He welcomed planned government investment in the manufacturing skills base through apprenticeship schemes, as was the easing of the cumulative effect of the mountains of legislation imposed upon the manufacturing industry.

But he said: “To date however, our sector has seen little evidence of the Government's rhetoric becoming a reality.”

Good news

On a positive note he said a new bio-mass plant will be constructed on the site of the former Anglesey Aluminium Metal primary smelter, near Holyhead, Wales.

Construction of the plant will create up to 600 jobs and 100 full-time staff will be employed when it is operational. Power generated will be used by Anglesey Aluminium for its remelting operations or exported to the National Grid.

Other good news was Jaguar Land Rover's plan to build a new engine plant, near Wolverhampton, to be opened in 2013 and a 1000 new jobs will be created at its Solihull Land Rover facility.

In aerospace, both Airbus and Boeing have decided to extend the life of aluminuim through 2025 by introducing mid life upgrades and new engine options to their SA fleet of aircraft and SA order back log stands now stands at around seven years.

Airbus is increasing SA build rates to circa 40 SA per month in 2012 and its super jumbo A380 to three ships sets per month.