ArcelorMittal suspends wire rod production in Gijon due to market downturn

Global steel company ArcelorMittal is suspending wire rod production at its plant in Verinha (Gijon), Spain, until January 7, 2025. According to representatives of the company and the trade union, the decision is due to low demand for steel and high volumes of imports from outside the EU, elDiario reports.

This production line was already shut down for 10 days in October due to a lack of orders caused by massive imports of cheaper steel from third countries and rising energy prices.

“Wire rod is one of the rolled products most affected by the huge volume of imports from outside Europe,” said a company spokesperson.

The shutdown of the unit will affect more than 180 employees. They will be able to use the days for medical examinations, vacations or vocational training. Representatives of the CCOO trade union note that the production line at the plant will be launched on January 3.

Wire rod production at the plant has been suspended throughout the year. The latest decision was synchronized with the holiday period to optimize the shutdown and reduce the impact on the company’s operations.

In addition, on November 26, 2024, ArcelorMittal announced the postponement of plans to build new direct reduced iron (DRI) plants, including the Gijon facility. The reason was unfavorable political, energy and market conditions in Europe.

Earlier, ArcelorMittal announced a production cut from December 9 to the end of the year due to a lack of orders at the Romanian ArcelorMittal Hunedoara. The company explained this decision by economic difficulties caused by a decline in demand for its products.