Acerinox has ceased operations in Spain due to rising energy prices caused by Russia's war in Ukraine.
A union source at the Spanish stainless steel producer told AFP that the company has halted production at its plant in Cadiz, in the southern Andalusia region, due to rising electricity prices.
He said electricity prices in the Spanish wholesale market have hit record highs in recent days, forcing Acerinox to implement plans to layoff all 1,800 employees at its Cadiz plant.
He said the unions are currently in talks with management to "negotiate the terms" of the so-called ERTE permit scheme.
The move comes after a year in which the steelmaker's net profit rose to a record 572m euros amid rising global demand.
Earlier this week, two ArcelorMittal plants, both located in the northern Basque Country, halted production due to rising energy prices, a spokesperson for the global steel giant told AFP.
A factory with a 400-strong workforce in Olaberria was shut down for 15 hours on Tuesday due to "high electricity prices" that put pressure on production costs.
On Wednesday, it said it resumed operations "but intermittently" during off-peak hours when electricity prices were lower.
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