[Ferro-Alloys.com] European and North American ferroalloys and silicon metal producer Ferroglobe is making further production cuts in Europe and has completed asset disposals in Poland and South Africa, the company said in early October.

 

The company said in a statement that it idled two ferrosilicon furnaces in Chateu-Feuillet in France September 30 and said a third at Laudun would be idled November 15. It also said it would idle three silicon metal furnaces October 7 -- two in Montricher and one in Laudun.

 

Ferroglobe also said ferrosilicon production at Polokwane, South Africa, had been idled since August 1, while production had been reduced at its plant in Sabon, Spain.

 

Its Bridgeport, Alabama ferrosilicon facility has been idled since September 1, with orders transferred to its Beverly, Ohio, facility.

 

The company's statement did not disclose the tonnage of production idled in the latest round of ferrosilicon and silicon cuts.

 

"Given the current market environment, Ferroglobe is making further adjustments to its global production platform," the company said. "In addition to previously announced production curtailments, the company is taking steps to extend or bring forward planned outages over the fourth quarter at several facilities in an effort to streamline operations, adapt production to reduced demand, and release working capital." These outages are expected to last four to six months, it said.

 

Last month, Ferroglobe completed the sale of its FerroAtlantica subsidiary, which includes 10 hydroelectric power plants and the Cee-Dumbria ferroalloys plant in A Coruna in Spain, to TPG Sixth Street Partners, in a deal worth Eur170 million ($187 million).

 

"Today's announcements reinforce management's focus on adapting to the evolving market and taking actions aimed at enhancing and optimizing our production footprint and overall competitiveness, with a strong emphasis on generating cash," Ferroglobe CEO Pedro Larrea said in the statement. "As we look ahead, we will continue to monitor supply-and-demand dynamics across our product portfolio and take further actions as required to ensure a return to profitability and effective management of working capital."

 

Ferrosilicon and silicon metal prices have been under pressure globally for most of this year. Manganese alloys have also been under pressure, and several producer and supplier sources said they believed annual requirements from steel mills in the US for ferroalloys in 2020 would be down significantly compared with 2019. (S&P Global Platts)