[SMM Aluminum Flash News] Saint-Gobain to Shut Down US AZS Production Line Amid Rising Cost Pressure

Published: May 29, 2026 11:45

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Saint-Gobain will discontinue production of its Alumina-Zirconia-Silica (AZS) line at the Falconer facility in the US, with production expected to end in August and 79 positions affected. The company said other product lines at the site will continue operating. Industry reports show AZS refractory manufacturing is facing rising energy costs, tighter environmental regulations and growing zirconium raw material shortages, driving production costs higher. Increasing demand for high-purity zirconia from sectors such as solid-state batteries, nuclear applications and advanced manufacturing is also intensifying raw material competition. Markets believe weaker North American construction demand and elevated operating costs continue to pressure profitability in related manufacturing sectors.

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