SIDENOR will stop its production 20 days until the end of the year by the exorbitant price of electricity

SIDENOR has announced its decision to stop production at its Basauri plant for a period of 20 days from Monday and until December 31, 30% of productive days.

SIDENOR will stop its production 20 days until the end of the year by the exorbitant price of electricity

SIDENOR has announced its decision to stop production at its Basauri plant for a period of 20 days from Monday and until December 31, 30% of productive days. The measure has been adopted by the "exorbitant" price of electricity, whose escalation has raised the electric cost in SIDENOR by 300% compared to last year.

In a statement, the direction of the steelmaker has reported that "it has been forced to stop its activity before the exorbitant price of electricity, which has increased by 25% the costs of the company, which currently pays 260 euros per MWh, When last year barely paid 60 euros per MWh, 300% more ".

This increase in electricity cost assumes, as explained in a statement from the company, about 200 euros more per ton, that is, an increase in the costs of the company of more than 25%. This impact on the costs "causes losses and makes it impossible to maintain the current pace of production," he added.

Faced with these costs, and "as urgently", the management has made the decision to stop 20 days, that is, 30% of the programmed productive days, from now until December 31.

It is a first action to try to limit the tremendous impact that the "disrupted and uncontrolled" electrical costs are causing SIDENOR, since, they have added, "it is impossible for them to maintain the current production pace".

In this way, today has been communicated to the Company Committee and the entire staff that is going to stop the activity for 20 days, that is, 30% of the programmed productive days, from now until December 31, this year.

With this decision, SIDENOR tries to "limit the tremendous impact of the high cost of electricity in its activity." However, as he has specified, "this stop does not solve the background problem, and other measures will be necessary to persist the current outlook of uncontroller in electrical prices."

The stop affects directly and immediately to the main plant of Basauri, but it will also "progressively" "the rest of the plants, have advanced from the direction.

Updated Date: 15 October 2021, 05:22

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