Elkem Iceland is located at Grundartangi, Akranes, a 30 minutes drive from Reykjavík by car.
Elkem Iceland (former Icelandic Alloys Ltd.) was established April 28, 1975 by the Icelandic government in cooperation with the American company Union Carbide. In 1976 Union Carbide withdrew from the plant and Elkem took their place. The government then started cooperation with Elkem, who now holds the major stock share. The Japanese company, Sumitomo Corporation, became a stockholder in 1984.
The construction started in 1977. The first furnace has been used for production since 1979 and the second furnace since 1980. A third furnace was put into operation during the autumn of 1999.
In 2006 the decision was made to start production of Magnesium-ferrosilicon at Icelandic Alloys. The new Magnesium-ferrosilicon plant has been up and running during the spring 2008.
The core product at Elkem Iceland is Ferrosilicon, which is divided into several sizes. Ferrosilicon is one of the elementary raw materials for the steel industry, either used in the refining of steel or as an ingredient to reach predetermined qualities. In addition to this it is used to a minor extent in the chemical industry.
Elkem Iceland has always produced standard Ferrosilicon. During recent years the plant has also specialized producing refined metal with reduced content of aluminium and carbon. In addition, Elkem Iceland produces highly specialized Magnesium-ferrosilicon.