Soaring energy costs push Siderurgia Nacional to halt production
Portuguese long steel producer Siderurgia Nacional (SN), part of Grupo Megasa, has temporarily halted operations at its Seixal and Maia plants due to surging energy costs, Kallanish reports. The stoppage, initially planned to last until Friday, may be extended further.
“Soaring electricity prices have severely disrupted operations, making it impossible for the Seixal and Maia plants to maintain regular production schedules. Until now, the plants operated only when electricity costs per megawatt-hour were economically viable,” explains Megasa.
The company warns that such drastic production cuts are economically unsustainable for Portugal’s largest energy-intensive industry. SN directly employs 700 people, indirectly supports 3,500 jobs, and contributes €900 million ($947.9 million) in annual exports.
Megasa is investing in renewable energy projects to enhance decarbonisation and cost competitiveness, including the development of a photovoltaic park at the Maia plant. However, similar projects at Seixal remain stalled, pending approvals from local and national authorities. “These are strategic, forward-looking projects essential to the company and the local and national economy,” Megasa states.
The steelmaker also calls for clearer national and European energy regulations, highlighting its competitive disadvantage compared to other European countries, where energy-intensive industries benefit from tailored cost structures. Although Portugal approved legislation in 2022 to support such industries, it remains pending European Commission approval.
“Without swift action, deteriorating conditions could jeopardise the viability of Portugal’s steel industry,” Megasa warns.
Todor Kirkov Bulgaria
Megasa to improve energy self-sufficiency in Portugal
Portuguese long steel producer SN Maia, part of Grupo Megasa, will significantly increase the use of renewable energy in its production, Kallanish notes.
The steelmaker says it is transforming its energy matrix with the installation of more than 8,000 photovoltaic solar panels at the production site near Porto. The execution of the project has been awarded to the company Greenvolt Next Portugal.
The modules will have the capacity to produce a 5.06 megawatt peak, with an average annual production of 8,127 MWh.
“With this investment we show our commitment to the energy transition, betting on the use of renewable energy,” says Megasa’s executive director for Portugal, Álvaro Álvarez. “We plan to expand the use of renewable energy and reduce our dependence on the national electricity grid. The authorization process for the installation of solar panels in our SN Seixal unit is in a very advanced phase and is already being evaluated by local authorities.”
The Maia and Seixal operations produce wire rod, rebar and welded mesh.
Todor Kirkov Bulgaria
