The Russian industrial giant Rusal will halt production at the largest silicon plant in the Russian Federation, JSC Silicon in the Irkutsk region, starting January 2026.
This is reported by The Moscow Times.
The reason for the production stoppage was the lack of demand, as imported silicon is significantly cheaper than domestic, and supplies from abroad are increasing," the publication states. "At the same time, Russian products are also not needed on the global market.
The main reason for this decision was the increase in silicon imports from China, as it is significantly cheaper than the domestic product. According to Rusal's estimates, Chinese supplies are made at dumping prices due to global overproduction.
This plant is the largest producer of silicon in the country.
"The enterprise has already informed the authorities of the Irkutsk region about the upcoming suspension of operations. It expects that officials will help minimize the 'social consequences,'" writes The Moscow Times. — "Another Rusal plant, Silicon Ural, will continue to operate at partial capacity."
Earlier, Rusal announced plans to cut silicon production by 35% to 35,000 tons in 2025 due to China. In 2024, output was 53.4 thousand tons.
The capacity of Silicon is 34,000 tons per year, while Silicon Ural is 27,000 tons.
These plants are the only producers of refined silicon in Russia.
At the same time, the domestic market capacity is about 45,000 tons, meaning that at full load they must send part of the production for export, according to the publication.
As reported, Rusal announced nearly a threefold increase in profit in 2024 compared to 2023, reaching $803 million.
Rusal's revenue in 2024 decreased by 1.1% to $12.08 billion, while production costs fell by 6.8% to $2025 per ton.
The total aluminum sales volume in 2024 decreased by 7.1% to 3.86 million tons, while production increased by 3.7% to 3.99 million tons.
Rusal is the largest aluminum producer in the Russian Federation and the second largest in the world (outside of China).
The largest share package of Rusal is owned by Russian oligarch Oleg Deripaska.
