Russia’s RUSAL will halt operations at the Kremniy plant in the Irkutsk on January 1, 2026, a move that underscores the growing strain across Russia’s industrial base.
Image for representational purpose
The plant will be idled because demand has dried up, with imported silicon now undercutting domestic prices and overseas production still climbing.
Silicon plays a central role in aluminium manufacturing, where it improves castability by lowering melting temperatures and boosting fluidity. It strengthens the metal, enhances wear and corrosion resistance, and helps minimise thermal expansion — qualities that make aluminium-silicon alloys both durable and lightweight.
RUSAL said it has informed regional authorities about the shutdown and expects support in dealing with the associated social fallout. Its second silicon facility, the Silicon Ural plant, will remain in operation but at reduced load.
The company had already flagged deep cuts for next year, planning to scale back 2025 silicon output to 35,000 tonnes — a 35 per cent drop from its 2024 production of 53,400 tonnes — citing fierce competition from China. Kremniy alone can produce 34,000 tonnes annually, while Silicon Ural has capacity for 27,000 tonnes; together they are Russia’s only refined silicon producers. With domestic demand hovering around 45,000 tonnes, both plants typically rely on export sales to run at full capacity.
Also read: RUSAL has developed a revolutionary technology for treatment of aluminium scrap by electrolysis
The pause at Kremniy adds to a widening pattern of industrial retrenchment as economic pressures mount. At least 10 major Russian firms in mining, transport and machinery have shifted staff to shorter work weeks to contain costs. VSMPO-Avisma — the world’s biggest titanium producer — will cut hours for many administrative employees from December 1, calling the move necessary to preserve “operational stability.”
Other producers are taking similar steps. The Ashinsky Metallurgical Plant in the Chelyabinsk region plans to idle its stainless-steel shop and lay off more than 300 workers by end-2025. Metals group Cemros, diamond miner Alrosa, state rail monopoly RZhD and automakers GAZ, KamAZ and AvtoVAZ have all announced reduced hours or output. ChEMK and the Traktor plant are also switching to four-day schedules. In the wood-processing sector, Sveza has fully closed its plywood plant in Tyumen after a steep fall in demand.
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