ArcelorMittal questions the viability of its current industrial configuration in Spain

Global steel producer ArcelorMittal has expressed doubts about its current industrial configuration in Spain, according to AsturiasMundial.

“The situation is unstable. If this continues, it will be very difficult to maintain the industrial configuration we have today in Asturias: blast furnaces, all operating capacities,” said Alberto Carrero, director of communications, external relations, and corporate responsibility at ArcelorMittal Spain.

Blast furnace A at the company’s steel plant in Gijón is nearing the end of its service life. Its extension will require multi-million dollar investments, which is impossible under current market conditions. In addition, blast furnace B at the plant is to be shut down for maintenance next week.

Furthermore, sintering plant A must cease operations by December 31 in accordance with environmental commitments to the regional authorities, which will force the company to import pre-sintered ore, increasing production costs and calling into question the feasibility of maintaining two blast furnaces.

“We are already seeing blast furnaces closing in Europe, and not just at ArcelorMittal,” Carrero acknowledged.

Uncertainty about the operation of blast furnaces and ancillary facilities threatens to affect direct employment at ArcelorMittal and dozens of related companies that depend on the work of metallurgists in Avilés and Gijón.

Carrero summed up that the company has no visibility, so real, swift action is needed, not promises.

The company has joined other players in the steel sector in criticizing the European Action Plan for Steel and Metals. According to the industry, two steps are particularly urgent: effective trade defense measures and CBAM reform.

Carrero’s comment was made during the first loading of the new Sueve trading vessel in the port of Avilés – 228 rolls of galvanized steel produced by ArcelorMittal with a total weight of 3,598 tons will be shipped to two Portuguese ports.

At the end of November 2024, ArcelorMittal announced the postponement of plans to invest in new direct reduced iron (DRI) plants, including a facility in Gijón. The reason for this was unfavorable conditions at the political, energy, and market levels in Europe.