The company thanks Port-Cartier and the Quebec government for their support.
PORT-CARTIER, QC, Dec. 16, 2015 /CNW Telbec/ - In light of recent market developments and facing the prospect of optimizing the production capacity of its existing operations, Grupo FerroAtlántica regretfully confirms its decision to put an end to its Port-Cartier investment project. The company gratefully acknowledges the remarkable hospitality and support it has received from the North Shore community and the Quebec government's support as well.
Recent developments in China's silicon industry have led FerroAtlántica to review its growth strategy. The current and announced growth of China's production capacities are such that they will significantly tilt the market balance over the long term. This new factor compels FerroAtlántica to seek new development opportunities to complement its growth strategy through the optimization of its existing infrastructures, particularly in Europe. The Group will therefore favour expanding its activities from its home ports over investing in new facilities.
"We have always manifested a desire to participate in Quebec's economic development and prosperity. Working closely with our regional and governmental partners, whom I sincerely thank, in recent months we have devoted considerable time and energy into this project, which was still in its preparatory stages. This decision was not motivated by any local issues. Unfortunately, for FerroAtlántica, no new project can take precedence over consolidating our own facilities. At this juncture, where the industry must enhance its performance and maximize growth opportunities, this decision is wrenching but necessary," explained the Group President Pedro Larrea Paguaga, who noted the commitment and leadership shown by FerroQuébec CEO Benjamin Crespy and his staff over the past months.
This decision was made with a heavy heart and the Group understands the disappointment it will generate among Port-Cartier citizens. That is why the company wished to show its appreciation for the support it received from the municipality, the Corporation de développement économique and other socio-economic players in the region. FerroAtlántica has confirmed to Mayor Violaine Doyle that it will participate financially in a structuring initiative for the development of Port-Cartier's port infrastructures. The company is also analyzing the possibility of sharing the results of certain studies conducted over the past months with its regional partners.
About Grupo FerroAtlántica
Grupo FerroAtlántica is a wholly owned subsidiary of Spain's Villar Mir Group. FerroAtlántica is the global leader in silicon metal production and one of the biggest producers of manganese and ferrosilicon alloys. These alloys are used primarily in the automotive industry, silicone production, high-performance concrete and solar panel manufacturing. In 2014, FerroAtlántica recorded sales of €1.1 billion and employed 3,100 people at its 15 plants across Europe, South America, Africa and Asia.
About Grupo Villar Mir
Grupo Villar Mir is one of the largest privately owned Spanish industrial groups. Its worldwide operations span 40 countries on five continents. In only 25 years, Villar Mir Group has extended its activity portfolio to include construction, transportation infrastructure, real estate development, electrometallurgy, energy, fertilizers and services. Through its construction subsidiary, OHL, the group is already involved in several projects in Canada, including the University of Montreal Hospital Centre which, with a budget topping $2 billion, is one of the world's biggest hospitals currently under construction. OHL has a 25% stake in the concession and a 50% stake in the construction work. The group also holds a 50% stake in the $400-million Toronto subway project, which includes a 3.5-km double tunnel and 600 surface parking spaces.
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