HELSINKI (Reuters) -Norwegian metals maker Elkem said on Monday it will reduce ferrosilicon production in Iceland and its Rana plant in Norway due to challenging market conditions, and that this may result in temporary layoffs.
Elkem said weak demand from steel producers had led to higher inventories and lower prices while European Union efforts to potentially limit ferrosilicon and ferroalloy imports had further increased uncertainty.
“We will we use the shutdown to reduce our inventories,” silicon products Senior Vice President Inge Grubben-Stromnes said in a statement.
The core product at Rana and in Iceland is ferrosilicon, a critical raw material for the steel industry, Elkem said.
The Oslo-listed compamy is majority-owned by China’s Bluestar.
(Reporting by Essi Lehto, editing by terje Solsvik)
