Elkem Meraker to cease operation
The board of Elkem Meraker resolved at its meeting of 11 January to shut down furnace 22 on 1 June 2006, and thereby cease operation at the plant. This decision forms part of a necessary restructuring of Elkem's silicon business in response to tougher international competition, particularly from China. That calls for a concentration of Elkem's silicon activity in fewer and larger units. The consequence is that the industrial community in Meråker must shift to other forward-looking activities. Elkem will give weight to implementing the restructuring as painlessly as possible, and will cooperate with the workforce and the local authorities to help secure new jobs and facilitate new industrial activity in Meråker.
The closure date has been chosen in part on the basis of a detailed assessment of the time and process needed to transfer customer contracts to other Elkem plants. Elkem Meraker had about 100 employees at the end of 2005. Earlier decisions on shutting down two of its furnaces mean that the workforce is already being downsized by about 45 employees, so the 11 January decision will directly affect about 55 people.
Discussions will now be conducted with employees to ensure a good and orderly shutdown process in accordance with the Norwegian Work Environment Act and other existing agreements.
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