ArcelorMittal Spain, a subsidiary of Luxembourg-based steel giant ArcelorMittal, has decided to halt production activities at its Gijón plant, according to local media reports.
Due to low demand and weaker market conditions, the company has suspended its wire production once again until January 7, 2025, while its rail production will also be stopped from December 23 to January 2. This is not the first time ArcelorMittal Spain has made such a decision. As SteelOrbis reported previously, the Gijón plant was temporarily idled in October this year due to weak demand and the lack of orders caused by cheap imports.
In the meantime, having given its final decision on its decarbonization projects in France, ArcelorMittal has also temporarily shelved its planned direct reduction iron (DRI) project at the Gijón plant, for which it had received environmental approval from the government of Asturias and €450 million funding from the Spanish government. The reasons behind this decision were that the DRI technology is yet to be profitable due to high energy costs and that imports from China at cheaper prices have been increasing, causing oversupply in the EU.
Also, as SteelOrbis reported earlier, Lakshmi Mittal, executive chairman of Luxembourg-headquartered steel giant ArcelorMittal, pointed out that the CBAM and the EU’s flawed policies are hindering the decarbonization targets of the industry.
