Megasa recovers production at Narón plant

Spanish steelmaker Megasa has resumed operations at its electric arc furnace-based plant in Narón, in the Galicia region, on Friday after the forced stoppage of production on high energy costs, Kallanish learns. The company also restarted its operations in Portugal last week.

The steelmaker will produce only during nights, weekends and holidays when electricity rates are lower.

Megasa suspended production at the site on 1 March after it became economically unviable. The plant is one of the largest consumers of electricity and gas in northwestern Spain.

The one-month shutdown comprised only the foundry section, affecting almost 50 workers between 14 and 31 March. The production stoppage is understood not to have affected the rolling lines, which continued to run normally using billet from stocks.

According to a media report, the steelmaker is also resuming scrap supplies from the Port of Ferrol. Raw material imports were not affected during the 16-days domestic road transport strike in the country.

Other steel companies in Spain, such as ArcelorMittal and Celsa Atlantic are also gradually resuming production (see Kallanish 1 March).

Todor Kirkov Bulgaria