The company has announced short-time work arrangements for August, and will apply for government subsidies to provide partial wage compensation to employees during this period. Sources attribute this decision to the broader challenges facing the steel industry and a decline in demand.
Facing ongoing market challenges, Stahl Gerlafingen, a subsidiary of the Feralpi Group, has further reduced production. The company had already ceased production of commercial bars and sections earlier this year, impacting approximately one-third of its annual output. This decision led Stahl Gerlafingen to specialize in rebar production. However, the ongoing unfavorable market conditions have compelled further production reductions.
During August, there will be temporary production slowdowns in the rolling, melting, and finishing line workshops at Stahl Gerlafingen. The company attributes these slowdowns to "order intake not meeting expectations." While the company anticipates a market rebound in the second half of the year, the duration of this downturn remains uncertain.
This decision highlights the challenges facing the steel industry. The overall economic slump, a sluggish construction sector, and rising energy prices have increased production costs for companies and decreased demand. For Stahl Gerlafingen to overcome this difficult period, market conditions must improve and demand must increase.
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