Íslenska kísilfélagið hf. has terminated its contract with the American company Globe Specialty Metals for noncompliance in regard to the planned silicone metal factory in Helguvík, southwest Iceland.
From Reykjanes. Photo by Páll Stefánsson.
An investment agreement for a 40,000-ton silicone metal factory in the region was signed by the government, Reykjanesbær municipality and Íslenska kísilfélagið in February 2011 and operations were supposed to begin last summer, ruv.is reports.
However, Globe Specialty Metals have allegedly been slow to live up to their end of the agreement, eventually investing in the bankruptcy estate of a silicone metal factory in Canada instead.
CEO of Íslenska kísilfélagið Magnús Garðarsson said the company had to terminate the agreement so that the project can continue.
An electricity supply agreement with Landsvirkjun, the national power company, became invalid because of noncompliance but new energy talks are ongoing.
Click here to read more about the agreement with Globe Specialty Metals.