terminations planned for mid-July: 80 workers to receive dismissal notices
Icelandic Silicon Manufacturer Temporarily Halts Operations
PCC Bakki Silicon hf., a prominent silicon metal producer in Iceland, has announced a temporary shutdown of its operations, effective from mid-July, according to a company statement issued last night. This decision is expected to result in the layoff of around 80 employees.
The company's statement identifies persistent challenges in the global market for silicon metal and recent disruptions due to tariff disputes as key factors behind the decision. Specifically, the influx of low-priced, subsidized silicon metal, particularly from China, has contributed to a significant drop in market prices. PCC Bakki emphasizes that these imports are produced under environmental and sustainability standards that are lower compared to those at the Bakki plant.
The statement also underscores the urgency for Icelandic authorities to expedite their review of market conditions affecting companies like PCC Bakki, given the impact of these unfair imports. The company has officially voiced its concerns about the issue to the Ministry of Finance and Economic Affairs, which is currently assessing the matter. Moreover, the European Silicon Metal Producers Association has called for protective tariffs to safeguard production across the European Union, warning that inaction could lead to the complete shutdown of this strategic industry.
During the shutdown, PCC Bakki plans to initiate several improvement projects and prepare the facility for a swift resumption of operations when market conditions improve.
The ongoing investigations into the dumping and subsidization of silicon metal imports from various countries, including Australia, Angola, Laos, and Norway, by the U.S. Department of Commerce, may have indirect implications for companies like PCC Bakki if they import silicon metal from the countries under investigation or compete with companies that do. However, the specific impact on Icelandic companies would depend on their role in the global silicon metal market and their import sources.
If the U.S. investigations establish evidence of dumping or subsidization, importers of silicon metal from the said countries could potentially face antidumping duties (AD) and countervailing duties (CVD) in the U.S. market. Similarly, as China's silicon metal imports are subject to continued anti-dumping and countervailing duties in Canada, companies sourcing from China could be affected.
Companies involved in the silicon metal industry, such as PCC Bakki, should monitor these developments closely to gauge potential impacts on their operations.
- Given the ongoing investigations into the dumping and subsidization of silicon metal imports, PCC Bakki, like other companies in the silicon metal industry, should closely monitor the developments to assess potential impacts on their operations and financing.
- In light of the continuing antidumping and countervailing duties on China's silicon metal imports in countries like Canada, PCC Bakki, as a company that might source from China, should be aware of the potential repercussions it might face within the energy and finance sectors.
