Ascometal to stop production on skyrocketing energy: sources

Ascometal, part of Swiss Steel Group, will implement production stoppages in November and December at its two sites in France, in Fos-sur-Mer and Hagondange, market sources tell Kallanish.

The company told unions last week that production will stop for three weeks at each site. Fos-sur-Mer site director Hervé Hansen told French press the firm is being forced to stop output due to skyrocketing energy prices. Le Parisien reported that Ascometal typically pays about €50 ($49.8) per megawatt-hour for electricity in August each year. However, this year the figure ballooned to €850/MWh.

The company plans to pay some €80 million for electricity in 2023 versus €8m in 2022.

Swiss Steel did not respond to request for comment before press deadline.

Natalia Capra France