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 Japanese company, Sumitomo Corporation, became a stockholder in 1984. Elkem acquired all shares in the plant in 2003.
The construction of the plant started in 1977. The first furnace became operational in 1979, the second furnace was put into operation in 1980 and the third furnace came on-line in the autumn of 1999.
Today Elkem Iceland is the second largest ferrosilicon (FeSi) plant in the world with a production capacity of 120.000 tons per year.
The core product at Elkem Iceland is Ferrosilicon, which is is one of the elementary raw materials for the steel industry. FeSi is either used for refining of steel or as an ingredient to reach predetermined qualities. In addition it is also used to a minor extent in the chemical industry.
Elkem Iceland has always produced standard FeSi. During recent years the plant has expanded its portfolio of specialty FeSi to meet increased market demand for such products.
Elkem Iceland´s production flexibility, skilled & innovative workforce and competitive energy prices in Iceland are the three main pillars of the plants competitive edge.