Ferroglobe Makes Operational Adjustments in Spain to Address Rising Energy Costs

Rhea-AI Summary

Ferroglobe PLC (NASDAQ: GSM) announced measures to address rising energy prices in Spain, including idling one furnace at the Sabon facility, a second at the Boo facility, and cutting production by 25% at the Monzón facility. These actions aim to mitigate the impact of energy costs while fulfilling customer obligations. CEO Marco Levi highlighted the importance of the company's asset flexibility and expertise in navigating these challenges. The company continues to monitor the situation and adjust operations as necessary.

Positive

• Actions taken to counteract the impact of quadrupled energy prices in Spain.
• Idling furnaces allows for better management of operational costs.
• Ability to fulfill customer obligations despite production cuts.

Negative

• Production reduction of 25% may impact overall revenue.
• Idling of furnaces could lead to operational inefficiencies.

LONDON, Nov. 26, 2021 (GLOBE NEWSWIRE) -- Ferroglobe PLC (NASDAQ: GSM) (“Ferroglobe” or “the Company”), a leading producer of silicon metal, silicon-based alloys and manganese-based alloys, announced today that the Company has taken incremental actions to counter the impact of rising energy prices in Spain.

The Company has decided to idle one furnace at the Sabon facility, a second furnace at the Boo facility, and aims to reduce target production by 25% at the Monzón facility by modulating production in line with volatility in the energy price.

Collectively, these actions are aimed at minimizing the impact of rising energy costs in Spain, while enabling us to satisfy our existing obligations to customers.

Mr. Marco Levi, Ferroglobe’s Chief Executive Officer stated, “During this unprecedented time where energy prices in Spain have more than quadrupled over the past few months, we are constantly seeking ways to minimize the impact. The ability to leverage our broad asset footprint and technical expertise proves to be valuable in countering this problem.” Mr. Levi continued, “This latest set of actions enables us to fulfil our customer obligations in Spain, in part by utilizing other assets in the region, with the goal of optimizing each order. We continue to monitor this unique situation on a daily basis and will make operational adjustments accordingly.”

About Ferroglobe                                                                         

Ferroglobe PLC is one of the world’s leading suppliers of silicon metal, silicon- and manganese- based specialty alloys and ferroalloys, serving a customer base across the globe in dynamic and fast-growing end markets, such as solar, electronics, automotive, consumer products, construction and energy. The Company is based in London. For more information, visit http://investor.ferroglobe.com.

Forward-Looking Statements

This release contains “forward-looking statements” within the meaning of U.S. securities laws. Forward-looking statements are not historical facts but are based on certain assumptions of management and describe Ferroglobe’s future plans, strategies and expectations. Forward-looking statements often use forward-looking terminology, including words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “guidance”, “intends”, “likely”, “may”, “plan”, “potential”, “predicts”, “seek”, “will” and words of similar meaning or the negative thereof.

Forward-looking statements contained in this press release are based on information currently available to Ferroglobe and assumptions that management believe to be reasonable, but are inherently uncertain. As a result, Ferroglobe’s actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements, which are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Ferroglobe’s control.

Forward-looking financial information and other metrics presented herein represent Ferroglobe’s goals and are not intended as guidance or projections for the periods referenced herein or any future periods.

All information in this press release is as of the date of its release. Ferroglobe does not undertake any obligation to update publicly any of the forward-looking statements contained herein to reflect new information, events or circumstances arising after the date of this press release. You should not place undue reliance on any forward-looking statements, which are made only as of the date of this press release.

INVESTOR CONTACT:

Gaurav Mehta
Executive Vice President - Investor Relations
investor.relations@ferroglobe.com

MEDIA CONTACT:

Cristina Feliu Roig
Executive Director – Communications, Branding & Public Affairs
corporate.comms@ferroglobe.com

FAQ

What measures has Ferroglobe (GSM) taken regarding rising energy prices?

Ferroglobe has decided to idle one furnace at the Sabon facility, a second at the Boo facility, and reduce production by 25% at the Monzón facility.

Why is Ferroglobe reducing production at its facilities?

The reduction is in response to the significant increase in energy prices in Spain, which have more than quadrupled recently.

How will Ferroglobe's (GSM) actions affect its customers?

The company's measures are designed to minimize the impact of rising energy costs while still fulfilling existing customer obligations.

Who is the CEO of Ferroglobe (GSM) and what did he say about the energy situation?

CEO Marco Levi stated that the company is actively seeking ways to mitigate the impact of rising energy prices and is leveraging its asset footprint to optimize production.

What financial impacts might Ferroglobe (GSM) face due to these production adjustments?

The production cuts could potentially lead to a decrease in overall revenue, affecting financial performance.