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Thyssenkrupp sells Spanish Galmed plant to Network Steel

Ferrous metallurgy

Spanish Coil processing company Network Steel (NS) has acquired ThyssenKrupp's Galmed (FBA9) plant...

Thyssenkrupp sells Spanish Galmed plant to Network Steel

Spanish coil processing company Network Steel (NS) has acquired ThyssenKrupp's Galmed (FBA9) plant in Sagunto, Valencia, Callanish notes. The plant can produce 450,000 tons/year of hot-dip galvanized coil. The material is mainly supplied to the automotive sector.

Thyssenkrupp was unable to comment. NS said in a brief note that it was expanding its business but did not comment on the financial terms of the deal. Spanish government and union representatives also confirmed the sale.

“Thyssenkrupp Galmed management informed us that negotiations were successfully completed last week and that the transfer of shares is expected by the end of December,” union CCOO said. Workers' representatives have not yet been in contact with NS, but pending the industrial plan for the coming years, CCOO assures that employment and working conditions will be maintained.

“From the very beginning, the Valencian government has been in dialogue with both companies, providing maximum support for carrying out this operation,” says Spanish Industry Minister Marian Cano.

The German steelmaker closed the plant in November 2023 due to a significant deterioration in the European automotive market and, as a consequence, 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.

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