ThyssenKrupp is in talks to sell its Galmed (FBA9) plant in Sagunto, Valencia, to Spanish coil processing company Network Steel (NS), Kallanish notes. The facility can produce 450,000 tonnes/year of hot-dip galvanized coil. The material is mainly supplied to the automotive sector.
Spanish government and trade union representatives have confirmed the negotiations.
Thyssenkrupp could not be reached for comment, while NS indicated in a brief note that it is considering multiple market possibilities for growing its business but did not comment on Galmed.
The mayor of Sagunto, Darío Moreno, says the negotiations are an initiative led by Spain’s secretary of state for industry, Rebeca Torró, and the Sagunto administration is supporting the process. “We must respect the deadlines of the companies in the negotiations while institutions try to provide as much certainty as possible,” Moreno comments.
The Valencian councillor for industry, Nuria Montes, confirmed on Tuesday that the continuity of the FBA9 plant is a priority. Local government has made itself available to the current management and the possible future buyer to facilitate the transaction and prolong business activity, he added.
“We have been informed of all operations and movements, and we have held meetings precisely to ensure that the sale of this factory can be done successfully,” Montes said in a statement.
According to sources, thyssenkrupp and NS are expected to reach an agreement over the FBA9 plant before the end of the year.
The German steelmaker closed the facility in November 2023 due to the significant worsening of the European automobile market and the consequent reduction in demand for galvanized steel products in Spain and southern Europe. Thyssenkrupp carried out a detailed analysis of the profitability of its ten lines and the result showed the closure of FBA9 was inevitable from an economic standpoint.
The consultation process is yet to begin for the application of the Employment Regulation File (ERE) in relation to the plant’s closure. Negotiations with unions were scheduled for 20 September.
The Spanish unit halted production and laid off 165 workers in 2013 due to low market demand. The plant reopened three years later after massive protests and political pressure.
Todor Kirkov Bulgaria
