Maithan Alloys Ltd to Indefinitely Close Byrnihat Unit from September 30 Due to Rising Power Costs and Market Headwinds

Maithan Alloys Limited, a key player in India’s ferroalloys sector, has announced the indefinite closure of its Byrnihat manufacturing unit, effective September 30, 2025. The decision comes amid challenging market conditions and a significant hike in power tariffs in Meghalaya, which have made continued operations financially untenable.

 

Key Highlights:

 

The primary reason cited for the closure is a sharp increase in electricity costs in Meghalaya, where the Byrnihat unit operates. Energy expenses form a substantial portion of the total operating cost in ferroalloy production, rendering the unit nonviable at current rates.

 

Adverse market conditions, including sustained weak demand for ferroalloys, competitive pricing pressures, and fluctuations in raw material costs, have compounded financial stress on the unit’s operations.

 

Maithan Alloys described the move as a necessary strategic measure to mitigate losses and optimize the company’s overall business performance across its manufacturing facilities.

 

Management assured that all regulatory compliance, employee welfare, and social responsibilities will be handled diligently during the closure process.

 

The company will monitor market and cost environment developments to evaluate the feasibility of resuming operations at Byrnihat, contingent on improved conditions.

 

The shutdown represents a broader industry trend where power cost volatility and market disruptions are prompting capacity rationalization and consolidation.

 

Maithan Alloys plans to focus on enhancing efficiencies and scaling production in other operational units less impacted by such power cost spikes.

 

The company emphasized long-term optimism on ferroalloys demand growth driven by infrastructure, steel production, and industrial expansion once the sector recovers.

 

Market and Strategic Implications:

 

The Byrnihat unit closure underlines the critical importance of power pricing and supply stability for energy-intensive industries like ferroalloys in India.

 

The company’s move could contribute to short-term supply tightening in regional ferroalloy markets but is also aimed at preserving corporate financial discipline.

 

This development highlights the need for regulatory and policy interventions to ensure competitive industrial electricity tariffs that balance consumer and producer interests.

 

In summary, Maithan Alloys Ltd’s decision to indefinitely close its Byrnihat unit due to rising power costs and weak market conditions reflects prudent management action, focusing on sustainability amid sectoral challenges.

 

Sources: Maithan Alloys Ltd official announcement, Economic Times Metals and Mining News, Business Standard (September 2025)