ThyssenKrupp is in negotiations to sell its Galmed (FBA9) plant in Sagunto, Valencia, to the Spanish company Network Steel (NS). The plant can produce 450,000 tons/year of hot-dip galvanized rolled metal. The material is mainly supplied to the automotive sector.
Representatives of the Spanish government and trade unions confirmed the negotiations.
Sagunto Mayor Dario Moreno says the talks are an initiative led by Spain's Secretary of State for Industry Rebeca Torro , and the Sagunto administration supports this process. “We must respect the deadlines set by the companies in the negotiations, while the institutions try to provide as much certainty as possible,” comments Moreno.
Valencian Industrial Councilor Nuria Montes confirmed on Tuesday that the continuity of the FBA9 plant is a priority. The local government has made itself available to current management and the possible future buyer to facilitate the transaction and prolong business activity, he added.
“We have been briefed on all transactions and moves, and we have held meetings precisely to ensure a successful sale this plant," Montes said in a statement.
Thyssenkrupp and NS are expected to reach an agreement on the FBA9 plant before the end of the year, according to sources.
The German steelmaker has closed the plant in November 2023 due to a significant deterioration in the situation in the European automotive market and, as a result, a decrease in demand for galvanized steel products in Spain and Southern Europe. Thyssenkrupp carried out a detailed analysis of the profitability of its ten lines and the result showed that the closure of FBA9 was inevitable from an economic point of view.
The consultation process has not yet begun for the application of the Code of Employment Regulations (ERE) in connection with the plant closure. Negotiations with unions were scheduled for September 20.
The Spanish unit stopped production and laid off 165 workers in 2013 due to low market demand. The plant reopened three years later after mass protests and political pressure.
