Nyrstar slashes zinc output as power prices surge

Nyrstar NV

13/10/2021 09:23

Oct 13 (Reuters) - Nyrstar will cut production by up to 50%
at its three European zinc smelters from Wednesday due to the
soaring price of electricity, the Belgium-based company said in
a release.
    "The cost burden of carbon emitted by the electricity sector
which is passed on to industrial and domestic customers, mean it
is no longer economically feasible to operate the plants at full
capacity," Nyrstar said.
    "Indirect cost compensation for energy-intensive producers
to protect their competitiveness versus non-EU producers varies
by European country and this puts Nyrstar’s Budel, Balen and
Auby plants at a competitive disadvantage, compounding the
impact of extreme energy prices."
    Nyrstar did not say how much zinc production would be lost
or provide the production capacity of the three smelters.
    Record high natural gas prices are pushing some
energy-intensive companies to curtail production in a trend that
is adding to disruptions to global supply chains.  urn:newsml:reuters.com:*:nL8N2QO2GP

 (Reporting by Pratima Desai in London; editing by Jason Neely)
 ((pratima.desai@thomsonreuters.com; +44 207 513 5681;))