According to a notification submitted to the State of Massachusetts, US-based carbon-free steel producer Boston Metal will lay off 71 employees starting March 14.
Brazil incident halts operations
The company stated in a letter to the state authorities that an “unforeseen industrial accident” occurred on January 30 at its manufacturing facility in Brazil. According to Boston Metal, the incident resulted in a “critical equipment failure” and led to the suspension of industrial operations.
According to the company, the operational disruption had direct financial consequences. “As a result, we lost access to committed capital essential to supporting our operations in both Brazil and the US,” Boston Metal stated in its notification, adding that the funding shortfall necessitated workforce reductions in the United States.
Before the incident, the company employed more than 300 professionals across the US and Brazil.
Since its establishment, the company has raised over $400 million from various investors, including global steel producer ArcelorMittal, the venture capital arm of Saudi Aramco, and Microsoft’s Climate Innovation Fund. The company focuses on technologies designed to replace traditional coal-based steelmaking processes with carbon-free alternatives.