Spanish Eco Steel Solutions (ESS), a subsidiary of coil processing company Network Steel, has halted operations, Kallanish notes. The company informed workers’ representatives of its intention to file for redundancies.
The mandatory 15-day consultation period will begin next week. ESS operates a pickling steel line in Aranda de Duero.
“The cessation of activity is motivated by the global crisis affecting the steel sector, which in recent months has resulted in sharp falls in prices, low demand and high energy and operating costs, further exacerbated by ongoing international conflicts,” ESS states. “The current steel market situation makes it impossible to make a profit from an environmentally friendly product such as that produced by ESS, with the result being economic losses,” the company explains.
ESS has informed workers’ unions of the planned closure, as an effective solution to the situation facing the company.
Todor Kirkov Bulgaria
