A company called PCC BakkiSilicon hf. has decided to construct a silicone factory in the industrial zone Bakki, near Húsavík, Northeast Iceland.
The plant will have capacity to produce 32,000 tonnes of silicone metal a year to begin, with that increasing to 66,000 tonnes upon completion of the whole project, according to a joint statement from the Ministry of Trade and Industry and the Norðurþing municipality.
The plant will require 53 MW of power in the first stage and it is planned to obtain 48 MW of that from the new Landsvirkjun hydroelectric dam at Þeistareykir.
Reservations made in the contract between the municipality, the state and the German company PCC SE (and its subsidiary PCC BakkiSilicon hf.) have now been removed, meaning that planning and construction of the plant, and the entire industrial area, can begin.
Construction of the plant is expected to cost around USD 300 million and employ 400 workers. The plant itself will create 120 new jobs and production could begin as early as the end of 2017.
Alongside construction of the plant, road and harbor improvements will also be made, 640.is reported.
Stakeholders behind the project say they hope electrical, transport, communications, and other improvements will benefit companies all over the northeast.