Trying to operate an energy intensive business in the EU is about to come to an end.
Smelters are closing down at a rapid rate. Expensive power and cheap imports from Asia will eventually kill off all manufacturing in Europe.
OFZ was one of the largest smelters in Europe is now down to one furnace to produce for existing contracts. Most smelters in France and Spain have closed, the one in Bosnia closed some years ago, the one in Macedonia is also bankrupt.
Now nearly all silicon and Mn alloys come from China, Malaysia and India.
OFZ to have one furnace in operation starting from JulyOFZ, Slovakia’s Mn and Si alloys producer, intends to operate at reduced capacity utilisation and completely halt Mn alloys production amid the unfavourable market situation and high electricity tariffs in H2.
I note that OMH has declared its interest in producing battery materials for the renewable energy market, announced in the recent Annual Report. There is no bigger Mn alloy and FeSi producer in Asia (outside China)
EMN better look out as their power in Sarawak is just 1/10 of the cost of the Czech Republic, not only that they own a stake in the largest manganese ore producer in South Africa.
