Spanish specialty steel producer Sidenor has decided to close the rolling mill at its Azkoitia plant in the Basque region and consolidate production at its Reinosa plant in Cantabria, according to local media reports. The decision is 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 to perform other activities at the Azkoitia plant.
Although the company described the restructuring as necessary to stabilize operations, some unions have criticized the decision, arguing that it represents another step towards 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 remain competitive.
Production should be concentrated in Cantabria
The measure is necessary because the current workload is not sufficient to support two separate rolling mills, Seidenar said. As a result, the company will combine two rolling mills into one.
Worker representatives at the Reinosa plant said the consolidation could strengthen activity at the Cantabria plant by increasing production stability.
