End of United Silicon

The end has come for United Silicon. They have requested bankruptcy. The moratorium they were given ends today, and last night the Icelandic press reported on latest developments.

This is what has happened over the last few days. United Silicon had written a letter to the Environment Agency (EA) dated 16 January, detailing what they were planning to do, and said they hoped that some of the required rectifications could be carried out after the plant was in operation. Three days later, the EA replied (Norconsult’s report in English follows on from the EA’s Icelandic text). They had enlisted the help of Norwegian consultants Norconsult (United Silicon had been using the Norwegian engineering firm Multiconsult) and said that virtually all of the items in the company’s improvement plan must be carried out before another start-up could be considered, including erection of a smoke stack/ chimney to reduce the odour problems experienced by local residents (the company had hoped to do this once the plant was in operation).

Erection of the chimney, not to mention the other modifications needed, could take up to two years and would be expensive, plus a new operating licence and environmental impact assessment would be needed. After receiving the letter from the EA on Friday, the company realised that future operation would not be feasible, and that the probability of a company buying the plant was almost non-existent, and requested bankruptcy.

This morning, Iceland’s National Audit office announced that they are following up on a request by parliamentarian Hanna Katrin Fridriksson into how the Icelandic State has been involved in the United Silicon affair, from investments, environmental impact assessment, issuing of the operating licence and assessment of the plant on the health of local residents. They intend to produce the report by the end of March.

Since the plant’s operation was stopped on September 1, Arion Bank has been paying salary costs of 55 employees and also for the cost of necessary research.