Due to the significant increase in electricity costs, zinc manufacturer Nyrstar is cutting production by up to half. Running at full capacity is no longer economically feasible, the company writes. The electricity price largely follows the gas price and high CO2 costs incurred by energy companies are passed on to their customers.
These are factories in Budel in Brabant, Balen in Belgium and Auby in France. About 450 people work in Budel. They don’t have to worry about their jobs for the time being, the company reports.
“While high energy prices will impact zinc production, our temporary restriction is not expected to impact employment at Nyrstar,” said CEO Daniel Vanin. “We will also make the necessary efforts to meet our contractual delivery obligations.”
Zinc is used in many ways and places, from construction and infrastructure to transportation, industrial machinery, communications, electronics and consumer products.
Yara and Aldel
This weekend the Groningen aluminum factory Aldel already stopped production for 60 to 70 percent. “We are already paying 4,500 euros in electricity costs per ton of aluminum and the sales price is 2,500 per ton,” said financial director Eric Wildschut. “So that is absolutely impossible.” At Aldel, layoffs are not excluded.
The Zeeland fertilizer manufacturer Yara also had to intervene. There, 40 percent less ammonia is produced, a raw material for fertilizer.