Luxembourg-based steelmaker ArcelorMittal has announced the shutdown of two blast furnaces–located in Spain and Germany–due to soaring energy prices that are affecting its competitiveness.
International press reports confirmed that the facilities in Bremen, Germany, and Asturias, Spain are going to be closed . The reason for the closures is that “energy prices have risen exorbitantly” and are “strongly” affecting the competitiveness of steel production.
This is compounded by “weak market demand, a negative economic outlook and continued high CO2 costs in steel production”.
Both closures are scheduled for the end of September and will last until further notice. Another facility is expected to close in Hamburg, where the company produces wire rod.
While no closures have been announced in France, cost-saving measures are planned through a reduction in the use of temporary workers, early holidays, and the possibility of partial working activity depending on the factories’ sector of operation.