With a capacity of 450,000 tons, the plant produces hot-dip galvanized steel, mainly for the automotive sector. While the Spanish government and local unions have confirmed these negotiations, Thyssenkrupp has not yet made an official statement on the matter. Network Steel declined to comment on Galmed, stating that it is evaluating different market options.
The mayor of Sagunto, Darío Moreno, stated that the negotiations are being led by the Spanish Minister of Industry, Rebeca Torró, and that the local government supports the process. Moreno emphasized the importance of this sale for the region, both locally and nationally, and stressed the need to respect the timetable set by the parties. Nuria Montes, a member of the Valencia Industrial Council, stated that the continued operation of the plant is a priority and that the administration supports this process.
Thyssenkrupp decided to close the plant in November 2023 due to the contraction in the European automotive sector and the decrease in demand for galvanized steel in Southern Europe. An analysis of the plant's profitability concluded that Galmed was unable to respond to the requirements of economic conditions and that its closure was inevitable. With the closure decision, negotiations for employment arrangements are scheduled to begin in September.
Galmed, which had previously ceased operations in 2013 due to low demand and laid off 165 employees, reopened in 2016 following intense protests and political pressure at the time. However, challenging industry conditions and fluctuations in the global steel market have put the plant's future back in limbo.
Negotiations between Thyssenkrupp and Network Steel are expected to conclude by the end of the year. If an agreement is reached, Network Steel is expected to strengthen its presence in the Spanish steel market. In the meantime, the local government and unions are focusing on solutions that will allow the plant to continue operating.
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