The Icelandic pension funds obviously don’t have much faith in the PCC silicon metal plant in North Iceland, as they have reduced the values of their shares in the plant by 75-100%. Íslandsbanki have also reduced the value of their shares “considerably”, without disclosing how much.
A company called Bakkastakki manages the billion kronur investments by the Icelandic pension funds. The five pension funds involved had acquired a 13.5 % share in Bakkastakki, with the German company PCC SE holding 86. 5% stake in the silicon plant. Icelanders can read about it here.
The reason for the action taken by the pension funds (which PCC had approached last year when searching for more funds) was the great deal of uncertainty about the operation of the silicon plant (i.e. delays and difficulties), coupled with harsh conditions in the commodity markets.
Meanwhile, two and a half years after it was closed down by the Environment Agency, Stakksberg is still trying to sell the beleaguered United Silicon smelter in Helguvik in southwest Iceland. And the PCC problems probably haven’t helped.