Rio Tinto, the owner of the aluminium smelter at Straumsvik, has announced that the company is seeking ways to improve the competitiveness of the smelter in the challenging market conditions the aluminium industry is now facing.
The aluminium industry is currently facing challenging conditions, partly due to low aluminium prices, decreased demand and production increases in China in recent years. In addition, the aluminium smelter in Straumsvik has recently been facing operational issues, affecting its financial results.
Since their foundation, Landsvirkjun and the smelter in Straumsvik have enjoyed a long and successful business relationship. The current power contract between the parties has been in effect since 2010.
“We realize and understand that the circumstances the company is facing are challenging and we are in a dialogue with Rio Tinto to achieve a common view on the situation.
We have stated and still believe that the power contract is fair for both parties and that there are factors in addition to the power price which affect their position, but we are in dialogue to analyze this further.”