150 jobs at risk in Húsavík

The potential operational shutdown at the PCC BakkaSilicon silicon plant in Húsavík this summer raises deep concerns and uncertainty about the future of about 150 jobs and an investment of approximately 50 billion. Jónína Brynjólfsdóttir, Deputy Member of Parliament, discussed the matter in the Althing and urged the government to take immediate action.

“If we put this in the context of the size of the community in Norðurþing, it is equivalent to about 600 people losing their jobs in Akureyri or 4,200 in Reykjavík,” said the MP. “Such impacts would weigh heavily on the community.”

International competition and undercutting threaten operations

The operational uncertainty at PCC can be traced back to difficult conditions in international markets. In particular, the trade war and competitive disadvantage due to underpricing of silicon metal – mainly from China – have affected the company's position. China now produces about 80% of the world's silicon metal and sells it at prices that many consider unfair.

“The factory in Húsavík produces high-quality goods with a low carbon footprint, but that seems not to be valued in the market,” said Jónína. She pointed out that PCC has had good cooperation with both the municipality and trade unions and is a key player in the local economy.

Calls for support for responsible industry

Jónína stated that it is necessary for Iceland to reassess the conditions for the operational viability of such green industrial companies and to support them by, among other things, requiring certificates of origin in raw material purchases and encouraging Icelandic aluminium plants to buy domestically.

“It is not justifiable for Icelandic aluminium plants to purchase silicon metal from coal-fired factories where human rights are even trampled upon, when we have environmentally friendly and responsible production here,” she said.

Jónína also reported that PCC had recently filed a complaint about undercutting from China to the Ministry of Finance and Economic Affairs and demanded trade protection – with precedents from both the European Union and the United States. She pointed out that comparable factories in Norway enjoy special incentives and discounts on electricity to support their operations.

“The responsibility is ours all”

Finally, Jónína urged the government to respond promptly to the status of PCC and treat the matter with the same seriousness as if thousands of jobs in the capital were at stake. “Action needs to be taken now – with the same seriousness as if it were about 4,200 jobs in Reykjavík. The responsibility is ours all.”