Métallurgie Magnola Inc. confirmed that it will be idling its magnesium plant in Danville, Quebec. The shutdown is for an indefinite period of time until the market conditions allow for a viable operation of the plant.
"The Magnola plant will be shutdown until the magnesium prices increase and the resumption of operations is financially justified," stated Bob Sippel, president, Métallurgie Magnola. "Although we believe in a positive future for magnesium, we are facing reality head-on and adjusting to the developments that have occurred in the marketplace, including increased production from China," added Sippel.
Increased low-cost production from China and magnesium sales at prices below Western producers' cash production costs, have resulted in a reduction in magnesium prices. Chinese producers now supply more than 50 percent of the world's magnesium compared to virtually no exports at all in the early 1990s.
"Idling of the plant will be done in a manner that will protect the integrity of the equipment and infrastructure in order to facilitate resumption of operations at the appropriate time," said Mike Agnew, vice president and general manager of Métallurgie Magnola. "Lay-offs of Métallurgie Magnola employees are scheduled to begin at the end of April. Approximately 10 employees will remain on site during the period of the shut-down," added Agnew.Latest from Recycling Today
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