Nyrstar’s Budel zinc smelting operations to be put on care & maintenance
Monday January 15, 2024Budel-Dorplein, 15 January, 2024 – Nyrstar’s Budel operations in the Netherlands will be placed on care & maintenance from the second half of January 2024 until further notice. This decision follows a thorough and extensive review and is a direct response to ongoing and projected high energy costs as well as deteriorating market conditions.
Particularly in the Netherlands, our Nyrstar Budel business is at a significant disadvantage compared to similar operations in other European member states due to the Dutch government’s discontinuation of support measures for energy-intensive industries including critical metals operations. These factors have increased the pressure on the operating margins of Nyrstar's Budel operations. As a result, continued production at the Nyrstar Budel site is currently not economically viable.
“Although we are not planning redundancies as a result of the care and maintenance, we understand that the decision to temporarily cease production at Nyrstar Budel will have an impact on our employees. Our electrified, low-carbon Budel site is one of the most efficient primary zinc smelters in the world and is essential in the industrial value chain. It is disappointing to have to suspend operations in light of market conditions and national policy decisions. We hope to be able to resume operations in due course, to continue to provide Europe with domestic production of important base- and critical metals”, said Henk Leendertse, Nyrstar Budel General Manager.
Nyrstar Budel’s nameplate capacity is 315ktpa of zinc, but the smelter has been operating on a flexible basis since Q4 2021. The situation remains under continual review and production at Budel will resume as soon as economically feasible. Nyrstar continues to actively manage production capacity at its other European sites in order to respond to ongoing uncertain near term market conditions.
Today’s announcement follows engagement between Nyrstar management and the Budel site’s works council.
ENDS
About Nyrstar:
Nyrstar is an international producer of critical minerals and metals essential for a low carbon future. With a market leading position in zinc and lead, Nyrstar has mining, smelting and other operations located in Europe, the U.S. and Australia and employs approximately 4,000 people. Its Corporate Office is based in Budel-Dorplein, the Netherlands.
The company’s operations are located close to key customers and major transport hubs to facilitate reliable and efficient delivery of raw materials and distribution of finished products. Nyrstar’s operating business is wholly owned by Trafigura, one of the world’s leading independent commodity trading and supply chain logistics companies. Visit www.nyrstar.com.
Questions from the media:
