Finnfjord, a cornerstone employer in northern Norway, faces potential economic damage from proposed European Union protection tariffs. The company's CEO Geir-Henning Wintervoll expressed deep concern about the possible measures that could impact their ferrosilicon exports.
"It eats into our margins, and that's something you don't like in this industry," Wintervoll said during a facility visit. "We want good margins so we know we can withstand any kind of market downturn."
The EU's Safeguard Committee is considering protection tariffs on ferrosilicon alloys that would include Norwegian exports. Ferrosilicon is a crucial component used in steel production. The final decision was expected during the visit but got postponed over the weekend.
Wintervoll remains confident in his company's competitiveness but acknowledges the challenges. "We are competitive, so we can handle it. But it will be worse than today," he stated.
The Norwegian-owned company employs 150 people and generates annual revenue exceeding 1.5 billion kroner. Approximately 85-90% of their production goes to European markets, making the potential tariffs particularly damaging.
Background and Implications
The EU's proposed measures aim to protect the bloc's own metal industry rather than specifically target Norway. However, Norwegian Industry Minister Cecilie Myrseth has argued that the European Economic Area agreement should protect Norway from such measures.
This situation highlights the complex relationship between Norway and the EU. Despite not being an EU member, Norway participates in the single market through the EEA agreement. The potential tariffs reveal vulnerabilities in this arrangement.
Wintervoll outlined contingency plans. "We've started doing some mental exercises: What do we do if the worst happens? From next week, we may need to find new customers for 30% of our production."
The company is considering alternative markets in Asia and the US, though Wintervoll expressed concerns about these options. "It feels counterintuitive to look to Asia when everyone wants to decouple from China. The US has its own trade policies too."
Local Impact and Employee Perspectives
The smelting plant represents a vital employer in Finnsnes, a town of approximately 5,000 residents. The community has deep ties to the facility, with multiple generations having worked there.
Employee representative Liv-Mette Storelvmo expressed frustration with the uncertainty. "The biggest concern is that we don't yet know what to worry about. It's difficult to understand properly since everything is very uncertain."
Among workers, skepticism toward the EU runs deep. An informal survey at the plant suggested overwhelming opposition to EU membership among employees. Many workers expressed strong nationalist sentiments and concerns about foreign influence.
Historical Context and Industry Challenges
Wintervoll brings historical perspective, having worked through multiple industry crises including China's emergence in steel production in 2005, the 2008 financial crisis, and the 2020 pandemic.
"This industry is cyclical," he noted. "So I usually say it's important not to get too excited when things go well. And you mustn't get depressed when things go badly."
The company has implemented energy-efficient practices, recovering energy from their processes to generate up to 340 gigawatt-hours of electricity annually. This makes them one of the world's most energy-efficient ferrosilicon producers.
Future investments hang in the balance, including plans to expand algae-based CO2 cleaning technology. "In this industry, you invest with a 10-15 year horizon, so you want the clearest framework conditions possible," Wintervoll explained.
The situation illustrates broader tensions in global trade as regions reconsider supply chain dependencies. While there's growing focus on securing critical materials and reducing reliance on China, efficient European producers like Finnfjord face new barriers.
The Norwegian government maintains that the EEA agreement should prevent such measures against Norwegian companies. However, with the EU committee decision pending, Wintervoll and his team prepare for potential market disruptions that could force rapid adaptation in an industry known for long-term planning.