4,000 euros per tonne of silicon today, compared to 2,000 euros at the end of 2020. With the end of Covid, the market has changed. For the few 200 employees at the Ferropem factory in Château-Feuillet at La Léchère, in Savoie, the economic reason given for closing the site is now obsolete. They ask the President of the Republic to put pressure on the metallurgical group. The point on the file, in three questions.
As a reminder, silicon is used in silicones. It can be purified to make photovoltaic panels. It is also used in pharmacy or electronic parts.
- What was the situation at the start of 2021?
In 2021, the Hispanic American parent company of Ferroglobe announces a significant deficit in its income. With the appearance of Covid-19 and the various confinements, the markets collapsed, the world demand for silicon fell sharply, prices with: a ton of silicon sold at the time for 2,000 euros.
- Why are we talking about a market reversal?
At the end of 2021, the post-Covid-19 period is marked by a complete reversal of the market in the last quarter. The prices are then multiplied “by 3 or 4 over certain periods”, the ton of silicon sometimes reaching 8,000 euros. Result: over the year, 2021, the group finally declares 1 billion 800 million euros in turnover.
“Over this year 2022, the trend of increasing market prices is confirmed, the group is on contracts signed up to 4,000 euros per ton”, Explain Mustapha Haddou, secretary of the central works council and CGT union delegate.
“Besides, they want to sell the site, but not a competitor”, he continues. “Ferroglobe considers that the Château Feuillet plant is not economically viable, but the group refuses to sell it to a competitor, because according to Ferroglobe, if a competitor takes us over, he could make us viable, that is the whole hypocrisy of the file”.
- Why is time running out for employees?
For the 200 Savoyard employees threatened by the social plan announced in March 2021, the days are numbered. The PSE information consultation period (job safeguard plan) ends on Friday 1 April. The CSE has yet to issue an opinion to the PSE, and the first effective layoffs could take place as early as May 2022.