Elkem – metal plant

Elkem Iceland was established in 1975 by the Icelandic government in cooperation with Union Carbide.

In 1976 Elkem AS acquired Union Carbide‘s stake and then became the only shareholder in 2003.

The original plan was to build 4 furnaces, but during construction it was decided to build only 2 furnaces in the first phase. The construction started in 1977 and the first two furnaces came on stream in 1979 and 1980. A third one was put into operation in 1999. In 2006 it was decided to start production of MgFeSi (nodularizers for iron foundries) at Elkem and the new MgFeSi plant began production in 2008.

In 1977 Icelandic Alloys Ltd. (now Elkem Iceland) started the construction of a FeSi factory at Grundartangi. Initially the first phase design criteria assumed a factory equipped with only one furnace plus the necessary infrastructure, soon to be expanded by a second furnace. Both furnaces were producing at full capacity in 1980. The third furnace was added in phase two commencing in 1995 and furnace III was in full production by 1999. The new furnace produces 75% silica iron and is designed for a load of 42 MV and production of 42 thousand metric tons and for this 330 GWh per year is needed. The furnace came into operation in the autumn of 1999, increasing the plant’s production capability by 60%. The electrical furnace load of the factory is about 120 MW, annual FeSi production is 120 thousand metric tons, and the energy consumption is around 945 GWh per year.

During the systems design of the plant, quality control of electricity was made and magnetic field measurements.

Verkís services was design, consulting, electrical and control systems, tender documents, inspection, testing, commissioning, contracting, participation in project management, monitoring, planning and cost estimates.

Technical information


Grundartangi, Iceland


120 tpy

Project period:

1977 – 1999

World goals