German silicon company wants to open Iceland factory fast

Leaders of German company PCC have put their plan for a new silicon factory in North Iceland into full swing and are aiming to secure a production licence within 10 months.

The proposed new factory is set to rise near Húsavík and PCC has arranged an open meeting in two weeks’ time to discuss its plans with local people, Ví reports.

Following the unsuccessful termination of negotiations between electricity generator Landsvirkjun and aluminium smelting company Alcoa last month, it now appears that the first factory to rise in the designated new industrial zone at Bakki near Húsavík will be a silicon factory.

As previously reported, PCC has already signed a declaration of intent with Norðurþing local authorities and Stöð 2 now reports the company wants to secure an operating licence by September in order to begin work before the end of 2012.

The plans for a public meeting on 13th December are seen as proof of how well PCC leaders believe the project is progressing. The company wants to build its factory in two stages and produce as much as 66,000 tonnes of silicon a year, needing a workforce of 80 people when planned production begins in 2014. The construction of the plant is expected to create 200-300 temporary jobs.

Ví sources claim that negotiations between PCC and Landsvirkjun over electricity supply are in their closing stages and that a contract will likely be signed shortly after the New Year. The factory would need around 50 megawatts in its first stage and around the same for the second unit. Landsvirkjun is expected to meet the energy needs by completing two new geothermal generating stations.