Russia’s Aluminium Giant Rusal Shuts Key Plant as China’s Low-Cost Silicon Undercuts Industry

Russia’s largest silicon producer will halt operations on 1 January 2026, as slowing economic activity and surging imports push domestic manufacturers out of the market, The Moscow Times reported on November 17.

“Kremniy” factory, owned by the company Rusal, located in Shelekhov in the eastern Russian Irkutsk region, said demand for Russian silicon has collapsed because imported material is significantly cheaper, and foreign shipments continue to rise.

The company also admitted that Russian silicon has no competitiveness on global markets.

Kremniy has already notified regional authorities about the shutdown and asked for help to soften the “social consequences” for workers. Rusal’s second facility, Kremniy Ural, will continue operating but at reduced capacity. Both plants are Russia’s only producers of refined silicon, according to The Moscow Times.

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Rusal had earlier warned it would cut silicon output by 35% in 2025, blaming pressure from cheaper Chinese competitors. In 2024, production stood at 53.4 thousand tons.

The shutdown shows a broader wave of production cuts across Russian industry. At least ten major companies in mining, transport, and machinery have moved to shorter workweeks due to weak domestic demand and falling exports, The Moscow Times wrote.

Titan giant VSMPO-Avisma will shift staff to part-time from 1 December. The Ashinsky Metallurgical Plant will close its stainless steel shop and lay off over 300 workers by the end of 2025. Cement producer Cemros, diamond miner Alrosa, Russian Railways, GAZ, KamAZ, and AvtoVAZ have all introduced reduced schedules.

Meanwhile, the Chelyabinsk Electrometallurgical Plant and the Tractor Plant have switched to four-day weeks, and a major plywood factory in Tyumen has closed entirely due to a collapse in demand, The Mosow Times reported.

The growing list of shutdowns and slowdowns underscores the economic strains facing Russian heavy industry as imports outcompete domestic production and important export markets shrink.

Previously, it was reported that the flagship of Russia’s defense industrial complex, tank manufacturing giant “Uralvagonzavod” (UVZ), has announced a large-scale personnel reduction.

According to the Russian outlet E1, the enterprise plans to cut roughly 10% of its workforce and completely halt new hiring by February 2026. However, information obtained from UVZ staff suggests the actual scale of the “optimization” could be much deeper: some divisions may lose up to 50% of their established headcount.

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