Germany’s Thyssenkrupp is closing its Spanish Galmed (FBA9) plant, located near Valencia, the company confirmed when approached by Kallanish. The Sagunto plant can produce 450,000 tonnes/year of hot-dip galvanized coil. The material is mainly supplied to the automotive sector.
The German steelmaker states it is taking the measure 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 confirms having carried out a detailed analysis of the profitability of its ten lines. The result showed the closure of FBA9 is inevitable from an economic standpoint.
“The capacity of the Sagunto production line is already greatly underutilised and the trend will intensify in the short term; in the near future, it will no longer be possible to exploit the line economically,” the company admits.
Thyssenkrupp confirms the closure of Galmed operations will be completed within 12 months and the companies will offer “viable solutions” to its 120 workers. This includes discussions with Volkswagen Group’s battery unit, PowerCo, to identify employment possibilities.
Thyssenkrupp previously closed its FBA9 facility and laid off 165 workers in 2013 due to low market demand. The company reopened the plant three years later after massive protests and political pressure.
Todor Kirkov Bulgaria