Operations to halt mid-July: 80 employees to be laid off

PCC Bakki Silicon hf. has announced a temporary shutdown of its operations beginning in mid-July, according to a statement issued by the company last night.

Approximately 80 employees will be laid off in connection with the shutdown.

The company cites ongoing difficulties in global markets for silicon metal, as well as recent disruptions caused by tariff disputes. In particular, the influx of low-cost, subsidized silicon metal—especially from China—has significantly depressed market prices. According to the company, these imports are produced under lower environmental and sustainability standards compared to the silicon manufactured at the Bakki plant.

Concerns over unfair imports

The statement stresses the urgent need for Icelandic authorities to accelerate their review of current market conditions affecting companies like PCC Bakki, given the impact of these unfair imports.

The company has formally raised the issue with the Ministry of Finance and Economic Affairs, which is currently reviewing the matter. Additionally, the European Silicon Metal Producers Association has called for protective tariffs to safeguard production across the European Union, warning that failure to act could lead to the complete shutdown of this strategically important industry.

Focus on upgrades during shutdown

During the shutdown, PCC Bakki plans to carry out improvement projects and prepare the facility to resume operations quickly once market conditions improve.