Economy

ACB

Agencies | Drafting

In addition, he has said that the Sestao plant “is not viable” and calls for “rapid measures” in Europe to defend against Chinese competition. Thus, it has indicated that “it does not know if it will reopen the Biscayan steel mill.”

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Arcelor Mittal has stated that under current market conditions, the Sestao’s Compact Steelworks of Bizkaia (ACB) “is not economically viable” and that, if “quick measures” are not adopted in Europe to defend trade against Chinese competition, this plant could be “doomed to a definitive closure”. Therefore, he has assured that they do not know if the Biscayan steel mill will reopen, but that, if the market does not change, “it cannot work”, as the company has informed Europa Press.

These demonstrations were carried out by an Arcelor Mittal spokesperson after it was announced this Thursday that the ACB, located in Sestao, will close, of temporarily and indefinitely due to the difficulties of the steel market.

The company has indicated that, at present, contacts with the Administration, both with the Sestao City Council, the Biscay Provincial Council or the Basque Government, are “regular and constant”.

Arcelor Mittal has stated that they have decided to carry out a temporary and indefinite stoppage because “market conditions do not allow knowing when and if the Sestao plant will restart”.

Measurements in Europe

The company has indicated that cost is “much higher” in Spain that in other European countries and, specifically, with respect to Germany, there is a 38% difference compared to next year’s prices, which makes it “very difficult” to compete with other European countries, “especially if they flood us almost 30% cheaper steel from China. “

Arcelor Mittal has indicated that Europe “is not taking swift action” and has warned that, if it does not take such steps “swiftly” to face competition from Chinese steel, the Sestao Compact Steelworks “it could be doomed to a definitive closure”.

The company has indicated that it is something that “they do not plan” but right now there is no “visibility”. “The shutdown right now is indefinite, it could only start the plant again if market conditions change and, if not, no. Market conditions have to change and market conditions are that the prices at which it is placing China steel in Europe they are of the order of almost 25 or 30% cheaper than those produced here, “he added.

“It is not economically viable”

The company has indicated that, at present, they do not have “visibility” to see when there may be a change in current market conditions and, “with current market conditions, the plant cannot continue operating because it loses money at a forced rate.”

In this sense, he has stated that right now the plant “is not economically viable” due to the “low prices” in the market, in addition to the “competitive position” of the Sestao steelworks itself. “It is an electrical steel mill and the cost of electrical energy for electro-intensive industries such as this is very high,” he added.