Duisburg / Húsavík, 26.May 2025.
PCC susidiary BakkiSilicon hf. has announced its plans to temporarily suspend operations in Húsavík, Iceland, starting mid-July 2025. This decision comes in response to ongoing challenges in the global silicon metal market and recent disruptions caused by international trade tensions.
In recent years, the Icelandic market has been increasingly affected by low-cost imports of subsidized silicon metal, particularly from China, where sustainability and environmental standards are considerably lower. These imports have led to a significant drop in market prices in Iceland, undermining the competitiveness of domestic production. It is therefore of vital importance that Icelandic authorities expedite their assessment of the situation. PCC BakkiSilicon has already filed a formal complaint to the Ministry of Finance and Economic Affairs concerning the suspected dumping of silicon metal into the Icelandic market, and the matter is currently under review. Likewise, European silicon producers have called for the introduction of safeguard measures, warning that without intervention, the production of these strategic raw materials in the EU is at serious risk of definitive shut down.
During the temporary shutdown of operations, the company will continue to work on improvement initiatives, process reviews, training programs, and an overall restructuring of operations. These efforts are aimed at ensuring that the facility is well-positioned to resume operations at short notice once market conditions improve. PCC SE remains fully committed to the long-term development of the Bakki plant, which is recognized as one of the most modern and environmentally advanced silicon metal production facilities in the world.
As a consequence of the temporary shutdown, approximately 80 employees will be dismissed for operational reasons. PCC SE and PCC BakkiSilicon hf. deeply regret the impact this decision will have on its employees, their families, and the local community. PCC SE has been in ongoing dialogue with key stakeholders and will continue to do so with the goal of finding a joint path forward to restart operations as soon as conditions allow.
