Norðurál Grundartangi ehf, a wholly owned subsidiary of Century Aluminum Company, has temporarily paused operations on one of its two potlines due to an electrical equipment failure at its aluminium smelter in Grundartangi, Iceland. The company has assured that there were no injuries from the incident and they are currently working to evaluate the impact of the disruption and get production back on track.
The company has announced that it is currently evaluating the situation and plans to provide more information during its quarterly earnings call on November 6. It is anticipated by the firm that insurance will help cover the losses from this incident.
Additionally, it will be working closely with both customers and suppliers to reduce any disruptions to their business. As a top global producer of aluminium, the firm has several production facilities around the world.
Right now, production at the Grundartangi smelter has been cut back by about two-thirds, although the second potline is still running at full capacity. The firm is currently assessing the impact and looking into the timeline for getting replacement equipment so the smelter can get back to full production capacity.
Also read: Century Aluminum hits 52-week high to USD 33.25 yet faces profitability headwinds
Century’s other developments
In recent news, the firm has renewed its power agreement with the South Carolina Public Service Authority, ensuring a steady electricity supply for its Mt. Holly smelter all the way through 2031. This deal backs a USD 50 million investment aimed at reviving idle capacity, which is expected to boost production by 50,000 million tonnes and increase the US aluminium output by 10 per cent. The expansion is also set to create over 100 new jobs, with an average annual salary of USD 125,000. Additionally, Snerpa Power has formed a long-term partnership with Norðurál, the firm’s European subsidiary, to provide cutting-edge energy management and flexibility services through its unique software platform.
Q2 result reveals
The company’s Q2 2025 results revealed earnings per share of USD 0.30, falling short of the anticipated USD 0.42, although revenue surpassed expectations at USD 628.1 million compared to an estimated USD 606.18 million. Even with the earnings miss, which was linked to rising power costs, BMO Capital has raised its price target for the firm to USD 26.00 and maintained its Outperform rating.
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