As a result of weak nickel prices, high inventories, increasing costs and poor market outlook, Falconbridge says it will make further production cuts.
Combined with previously announced shutdowns in Sudbury, Ont., and Norway, the new measures will remove about 18,700 tonnes of nickel from the market in 1993. According to Inco (TSE), which plans to cut 18,140 tonnes in 1993, an estimated 700,000 tonnes will hit the market from all sources this year. Falconbridge will also reduce its workforce by 200 people at its Sudbury division and 15% at its head office in Toronto.
Planned shutdowns include: six weeks over Christmas and ten weeks in the summer of 1993 at Sudbury; four weeks over Christmas and seven summer weeks at the Nikkelverk refinery in Norway; and three months beginning Dec. 26 at the company’s ferronickel operation in the Dominican Republic. With nickel inventories at record highs, the price of the metal has plunged this year. Prices have recovered somewhat in recent weeks, climbing to US$2.64 at the end of the month from a 5-year low of US$2.41 in mid-November.
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