German zinc producer Metallwerk Dinslaken has permanently shut operations due to the COVID-19’s impact on the zinc market. The company produces around 25,000mt of secondary zinc and zinc alloys at its Dinslaken plant, annually.
The lockdown situation has severely affected the supply of zinc scrap and its consumers in Italy, who have cut their consumption amid the pandemic. As the supply and demand of raw materials have shrunk, the company has opted to close its operations but will complete existing contracts, according to the company’s filing.
European businesses are facing huge challenges as several companies have filed for insolvency and many have completely shut operations. In the previous week, Recylex announced that its German units have filed for self-insolvency on falling lead and zinc metal demand.