Spanish seamless tube producer Tubos Reunidos (TR) plans to implement a new temporary employment regulation (ERTE) at its Amurrio plant in Álava. The measure comes in response to continued market uncertainty caused by the geopolitical situation and the impact of US steel tariffs, Kallanish learns from the company.
The consultation period for the temporary workforce adjustment began this week with an initial meeting between the company and workers’ representatives. TR presented the required documentation to justify the measure, highlighting the need for production flexibility due to a decline in orders.
At its general shareholders’ meeting in Bilbao last week, TR explained it is adjusting its strategy to the changing market conditions, which remain exposed to geopolitical risks and are expected to worsen.
The new ERTE could affect up to 850 employees at the Amurrio site, which has already experienced temporary production adjustments. The plant was previously under an ERTE until December last year, which also extended to the Trapagaran facility in Biscay.
In January 2024, TR consolidated all production at its Álava site. This move aimed to reduce net debt and lower production costs, while improving efficiency.
Todor Kirkov Bulgaria
