ThyssenKrupp, Spanish unions agree on Galmed HDG plant shutdown

ThyssenKrupp has reached agreement with worker representatives on the closure of its Galmed steel plant in Sagunto near Valencia, Spain, a spokesman told Steel First on Friday August 2.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

The hot dipped galvanizing plant, which employs 165 people, is to be closed in light of the difficult market conditions in the European steel industry.

No exact date for the end of production at Galmed has been released yet, although the company said it aims to make a decision after August. Although the closure will initially be for maintenance purposes, it may become permanent if business fails to pick up.

There would be no further discussions with trade unions if the closure is to be permanent.

“We are currently working as planned until August 4 [when many buyers shut down for holidays],” the ThyssenKrupp spokesman said.

“We will still supply all finished material to customers from calendar week 34 [August 19-25]. Then we will verify whether the line is [to be] started up again,” he added.

The provisional agreement was the result of talks with workers ‘representatives and advisers from trade union Confederacion Sindical de Comisiones Obreras (CCOO) and employees.

Management will now present the agreement to the workers, who will have the option to move to different jobs within the group, take early retirement or choose redundancy.

The German parent company first announced plans to close the plant earlier in 2013, as part of a restructuring programme aimed at saving €500 million ($663 million).

The Galmed facility had already been hit by capacity utilisation reductions as demand for flat steel products in Spain has fallen by about 40% since 2007, according to ThyssenKrupp.

The Galmed line supplies coated coil and sheet to car manufacturers and other industrial customers.

Only a month ago, the unions called for further industrial action over the shutdown plans.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.