The temporary closure of the PCC BakkiSilicon metallurgical plant continues to have ripple effects across the Húsavík region, with many local businesses now facing reduced income and staff layoffs, Morgunblaðið reports.
According to a new survey conducted by the Association of Municipalities in Northeast Iceland, the economic impact varies depending on the nature of each company’s operations — whether they relied on PCC directly or indirectly for revenue, or whether the slowdown has forced them to reduce costs elsewhere.
The survey was distributed to 40 businesses in and around Húsavík earlier this month, giving managers until October 16 to respond. Eighteen companies participated, and a significant number reported having already laid off employees — or expecting to do so in the near future.
The PCC BakkiSilicon plant suspended production this summer due to continued instability in the global silicon market. Since then, over 110 workers have lost their jobs at the factory, and local authorities have warned of a potential economic downturn in Norðurþing if the plant remains idle for long.
