Spanish special steel producer Sidenor has decided to shut down the rolling mill at its Azkoitia plant in the Basque region and consolidate production at its Reinosa facility in Cantabria, according to local media reports. The decision forms part of a restructuring effort driven by weak demand and declining orders in recent years.
The move will involve the transfer of 36 employees from Azkoitia to the Reinosa plant, while the remaining workforce will continue operating other activities at the Azkoitia plant.
While the company described the restructuring as necessary to stabilize operations, some unions criticized the decision, arguing it represents another step toward the gradual dismantling of the Azkoitia plant.
The move reflects broader pressures facing the European steel industry, including weak demand, rising costs and volatile market conditions. Companies across the sector continue to adjust production structures and consolidate operations to maintain competitiveness.
Production to be concentrated in Cantabria
According to Sidenor, this measure is necessary because the current workload is insufficient to justify maintaining two separate rolling mills. As a result, the company will merge two rolling mills into one.
The representatives of workers at the Reinosa facility said the consolidation could strengthen activity at the Cantabria plant by increasing production stability.