Megasa will temporarily stop night production due to high electricity prices

Spanish long steel producer Megasa is reorganizing production changes at its plants in Spain and Portugal due to high electricity prices. SteelOrbis writes about it.

From September 9 to November 1, the company will temporarily stop night production at plants in Narona (Spain), Seychelles and Mai (Portugal), implementing a daytime schedule. With this step, Megasa expects to reduce electricity costs without stopping production.

As the publication suggests, the company is negotiating with the Spanish government to resolve the situation.

At the factory in Narona, El Espanol writes, the schedule changes will affect about 100 steel and rolling shop workers. According to Alberto Airado, a representative of the CIG (The Galician Unions Confederacy) industrial council, the company held a meeting with the unions last week. They were informed about the situation, prices and average indicators of electricity consumption in recent weeks, and they also agreed on the appropriate steps to overcome these problems. It is reported that for the plant’s workers, this is the third reorganization of their work schedule in the last year.

In March 2022, Megasa shut down its plants in Seychelles and Maya due to rising electricity prices and resumed production a few weeks later.

The high cost of energy sources forces European companies to reduce production. So, for example, Slovenian SIJ Group reported about the decision to adjust its production. In September 2022, the company plans to reduce production by a third, and in the fourth quarter – by 40%.

As GMK Center reported earlier, EUROFER calls on the EU to take urgent action to overcome the energy crisis – steelmakers and industrialists from other energy-intensive industries emphasize the impossibility of continuing production in Europe under current conditions. As EUROFER notes, in recent weeks, many industrial enterprises have temporarily stopped or reduced production in Europe, and in the coming weeks there will be more of them.