Major Ferrosilicon Producer Curtails Production in Northern Norway
From Elkem's plant in Rana municipality in Nordland, Northern Norway. This plant has about 165 employees and is engaged in the production of ferrosilicon, an alloying metal used in steel production. The plant also produces silica that is used in the cement industry. (Photo: Einar Aslaksen).
Elkem is reducing the production of ferrosilicon at one of its North Norwegian factories due to challenging market conditions. The EU's potential safeguard measures on imports of ferroalloys have further increased uncertainty, the company writes.
Elkem ASA has decided to partially curtail ferrosilicon production at the company's plant in Mo in Rana, Nordland, due to challenging market conditions.
The curtailment may result in temporary layoffs of employees, the company writes in a press release.
“We have decided to temporarily curtail production due to ongoing weak market conditions in Europe, which has led to rising inventory levels and lower prices," says Elkem’s Senior Vice President for Silicon Products, Inge A. Grubben-Strømnes.
Uncertainty around EU measures
"Following the European Union’s investigation into potential safeguard measures on imports of ferrosilicon and ferroalloys, uncertainty has increased further," he adds.
As HNN has recently reported, it is still unclear whether Norway will be exempt from the EU's potential safeguard measures on imports of ferroalloys. This is creating uncertainty among several companies in the metal industry in Northern Norway, who have the EU as their main market.
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In Elkem Rana's case, 90 percent of the production goes to the European market.
"We will use the shutdown to reduce our inventories and support a better market balance," the Senior Vice President adds and concludes:
“The challenging global market conditions highlight the critical need for competitive, predictable framework conditions and continued access to the EU market for Norwegian industry.”
