ArcelorMittal, a global steel company, has announced that it will suspend production of long products in Asturias (northern Spain). This was reported by a number of local media outlets, including La Vozde Asturias.
The situation at ArcelorMittal’s plants in the region is of serious concern. Lack of orders and high energy costs have led to the suspension of long products lines at the Verigny plant and the Gijon steel plant until October 27.
This decision will affect about 500 employees, of whom 180 will take annual or sick leave. However, the majority will be subject to temporary job cuts (ERTE).
The unions believe that the current shutdown could be the beginning of the end of the integrated steel industry in Asturias, especially amid ongoing difficulties with rising energy costs and declining demand for steel products due to the arrival of cheap imported products from China, Turkey and Bulgaria.
Trade union representatives, including Jose Ramon Calleja of the UGT, are calling for protective duties from the European Union to stem the flow of imported steel, which undermines the competitiveness of local producers. Without these measures, they warn that not only the steel industry in Asturias, but the entire Spanish industry will be at risk.
Amid these events, the prospects for the project to introduce direct reduced iron (DRI) technology at the plant are even more worrying, as there are currently no concrete plans for its implementation. The lack of clear decisions and the delay in the introduction of new technologies threaten thousands of jobs and the stability of the region’s industry.
As GMK Center reported earlier, ArcelorMittal recently suspended coke production at its Gijon steel plant in Spain due to force majeure. On September 17, an explosion occurred at coke oven battery No. 1 in the plant’s coke-chemical division. After the explosion, the plant’s two coke oven batteries were immediately shut down and firefighters extinguished the fire. There was no information on the resumption of the units’ operation.
ArcelorMittal is a leading global steel and mining company with operations in 60 countries and production assets in 18 countries.
