Ferroglobe plans to close 5 plants to lift capacity utilization to about 80%
Key Facts
Ferroglobe said on November 3, 2026, that it plans to close 5 plants and shift production to its more competitive facilities, targeting capacity utilization of about 80%. The company said the production reallocation is part of measures to improve profitability, as operating costs came under pressure in the third quarter. The plan means concentrating production at facilities the company describes as its most competitive. The announcement comes alongside lower sales in some silicon product lines compared with the previous quarter, despite growth in manganese alloy sales. The company said implementation of the closures is subject to consultations with employee representatives at the relevant entities.
Chief Executive Marco Levi attributed the difficult operating environment mainly to higher energy costs linked to the Middle East conflict and excess ferrosilicon imports into Europe. In the third quarter, raw materials and energy consumption as a share of sales, excluding fair-value adjustments to energy contracts, rose to 72.5% from 67.3% in the second quarter. The company attributed the increase mainly to higher production and energy costs, particularly in Spain. This put energy costs at the forefront of factors weighing on operations during the period. Management also linked external pressures to increased imported supply in the European market, where ferrosilicon competes with domestic production.
Product lines had mixed performances in the quarter: sales of silicon metal fell by 3.9 million dollars, while sales of silicon-based alloys declined by 8.2 million dollars compared with the previous quarter. By contrast, manganese alloy sales increased by 6.3 million dollars. The company said lower shipments and prices, including a slight decline in the price of silicon alloys, contributed to weaker quarterly sales. This was partly offset by higher manganese sales and improved realized prices for silicon metal and manganese alloys. The divergence reflects different demand and pricing trends across the company's products during the quarter, while elevated costs continued to weigh on operating performance.
The company's shares, listed under the ticker GSM, closed at 3.86 dollars on November 3, after closing at 3.84 dollars on November 2; they had closed at 3.86 dollars on October 30. These closing prices show limited movement around the 3.86-dollar level in the sessions cited. According to third-quarter results data reported by Investing.com, citing Reuters, the loss per share was 0.06 dollars, compared with analysts' estimate of a loss of 0.03 dollars. The closing price on November 3, according to the same report, was 3.86 dollars. The company announced the plant plan on the day it released its results after the market close.
The company's third-quarter earnings call was scheduled for November 4, 2026, at 8:30 a.m. Eastern Time, the day after it announced the results and plan. Ferroglobe also announced a next cash dividend of 0.015 dollars per share, payable to shareholders of record on December 22, 2026, with payment due on December 30. The announced dates for the call and dividend provide follow-up details alongside the restructuring plan. Raising capacity utilization to about 80% remains the stated operational goal of the production reallocation. The plant closures remain subject to consultations with employee representatives.