The aluminum smelter at Grundartangi provides hundreds of jobs, in addition to numerous indirect jobs at various service companies in southwest Iceland.
mbl.is/Eggert Jóhannesson
“This is a tremendous blow. Our standard of living in Iceland is built on producing value and exporting it to foreign markets in the form of goods and services. Norðurál is simply one of the country’s largest export companies, so when a major part of its production shuts down for several months, it will inevitably have a significant negative effect on the national economy.”
So says Sigurður Hannesson, managing director of the Federation of Icelandic Industries, in an interview with Morgunblaðið, responding to news that part of Norðurál’s operations at Grundartangi has been halted.
“We will see this reflected in lower economic growth and in the financial performance of many companies — of course Norðurál itself, but also firms that do business with Norðurál, such as the energy companies. Eimskip has already issued a profit warning, and there are numerous other businesses and individuals whose livelihoods are largely tied to Norðurál. This impact will be far-reaching. Our thoughts are very much with the people in the area,” Hannesson said.
He added that it is difficult to estimate the exact financial loss resulting from the partial shutdown, as many factors come into play. However, it is clear that the government will need to review its fiscal policy and next year’s budget proposal.