Spanish Grupo CL closes Corrugados Getafe rebar plant

After 75 years of operation, the plant in the suburbs of Madrid stops production due to a number of negative factors

The Spanish company Grupo Industrial Cristian Lay (CL) has announced the closure of its Corrugados Getafe (CG) steel plant located in the suburbs of Madrid. This is reported by Kallanish.

The company, which specialized in the production of rebar, is shutting down after more than 75 years of operation. The decision will affect 152 employees, for whom a redundancy plan (ERE) has already been initiated.

The company cites growing pressure from local residents as the main reason for the closure. Due to active residential development in the city, residential areas have come almost close to the plant – less than a few hundred meters away. At the same time, environmental requirements from the government of the Autonomous Community of Madrid have become more stringent. In particular, the updated environmental permit prohibits the plant from operating night shifts, which the company says are critical to economic efficiency due to lower electricity tariffs.

Another factor was the change in international trade policy – primarily the US tariff policy – which significantly affected global steel flows and put additional pressure on European producers.

Grupo Industrial CL offers its employees the opportunity to be employed at other company facilities across Spain. Those who are unable to relocate are promised professional transition support programs in cooperation with municipal and regional institutions.

As GMK Center reported earlier, in 2024, Spain increased steel production by 3.3% compared to 2023, to 11.82 million tons. In December, Spanish steelmakers produced 870 thousand tons of steel (-14.3% m/m; +16% y/y). The average monthly steel production in 2024 amounted to 985.2 thousand tons, while in 2023 – 954.3 thousand tons, and in 2022 – 964.4 thousand tons.