Electric power is a priority power source in Norway, due to both good access, low prices and environmental and energy efficient reasons. Frekhaug Stål is designed to use electric power as an energy source and cannot easily be replaced by other energy sources, without major changes in the company.
Frekhaug Stål AS and an entire industry today experience large variations in electricity prices.
There are large energy costs associated with the production of cast steel. Melting and heat treatment are necessary processes that require high energy consumption.
When electricity prices increase, it will significantly affect our production costs.
Frekhaug Stål does not want to burden our customers with increased prices, but we unfortunately need to increase the energy addition further to be able to keep business running.
The current energy addition is NOK 17 per kg of delivered steel.
The validation for the addition is from week 02/2023 and to including week 10/2023.
A new rate on the energy addition will be assessed from week 11/2023
If there comes electricity support from the Norwegian government that affect our costs before week 11, the energy supplement may be reduced.
Frekhaug Stål AS
Øystein Blom CEO