PCC BakkiSilicon has announced the dismissal of 30 additional employees at its silicon metal plant near Húsavík, citing continued instability in the global silicon market.
The company had already laid off around 80 workers in mid-July, when production was halted due to what management described as a “temporary suspension of operations.” After the latest round of cuts, only 18 employees remain on staff.
According to a company statement, the decision follows a preliminary ruling by the European Union not to impose protective tariffs on silicon metal imports. PCC says the absence of such measures leaves the European market vulnerable to cheap imports from China, making conditions extremely difficult for producers in Europe.
Despite the layoffs, PCC SE, the German parent company of PCC BakkiSilicon, insists it remains committed to restarting the plant once market conditions improve. The company says preparations are ongoing to ensure readiness when circumstances allow.
The Ministry of Finance currently has a complaint before it regarding what PCC describes as underpriced imports of silicon metal into Iceland. Meanwhile, a working group involving five ministries has been tasked with drafting proposals to address the serious employment challenges now facing Húsavík.
