Nyrstar Suspends Operations At Its Belgian Smelter Balen
easybourse.com
Wednesday November 26th, 2008 / 9h41
BRUSSELS -(Dow Jones)- Belgian zinc refiner Nyrstar NV (NYR.BT) said Wednesday it will suspend production at its Belgian smelter at Balen, and the suspension is anticipated to continue until mid-2009, due to adverse economic circumstances.
The adjoining site at Overpelt will continue to operate a reduced five-day week, producing die-cast alloys and providing washed zinc oxides.
"If the current market conditions continue, further actions across the Group may become necessary," said Nystar's Chief Executive Paul Fowler in a press release.
The suspension at Balen will take place before the year end, as it is necessary to cut production due to the sudden and significant decline in customer demand, the company said.
The plant's suspension will reduce the company's zinc production by about 25,000 tonnes in 2008 and a further 130,000 tonnes in the first half of 2009.
The company also needs to minimize losses at the plant caused by the prevailing low zinc price, down 58% from its 2008 peak, combined with Balen's high energy and labor costs, Nyrstar said.
Balen currently has the highest labor cost across the Nyrstar Group and its energy cost has increased by more than 50% in the last 12 months, according to the company.
Nyrstar also said that its previously announced production reductions at Budel would now continue until mid-2009, which will equate to a reduction of approximately 10,000 tonnes of zinc in 2008 and a further 35,000 tonnes in the first half of 2009.
-By Peppi Kiviniemi, Dow Jones Newswires; +32 (0)2 741 1483; peppi.kiviniemi@dowjones.com |
