Consolidation of steelmakers in Basque region advances

The process of steelmakers’ consolidation in the Basque region, Spain, is advancing. So said the president of Spanish special steelmaker Sidenor, Jose Antonio Jainaga, during a meeting of the Basque managers and professionals’ association, ADYPE, monitored by Kallanish.

Jainaga proposed the creation of a large Basque steel group focused on high-added-value production formed by Sidenor, Aceros Olarra, Tubacex and Tubos Reunidos. “The companies would achieve a turnover of €2 billion per year and would preserve 6,000 jobs in the Basque region,” Sidenor’s president says.

“The amalgamation of special steelmakers in the area would help the sector to improve the production capacity and be more competitive while investing in new technologies,” he continues. “The hub should, therefore, grow the demand.” Jainaga has had conversations about the project with two of the companies, but did not reveal which ones.

The Basque region hosts a number of steelmakers, including those controlled by ArcelorMittal and Celsa. According to Jainaga, the region accounted for almost 40% of Spanish special steel production in the early 2000s, while it now produces only 20% of total output.