Spain: energy costs, steel industry giant cuts production

Sidenor: last year we paid 60 euro per MWh, now 227

11 October, 17:43

    (ANSAmed) - MADRID, OCT 11 - A large Spanish steel company based in the Basque Country, Sidenor, will partially stop its production due to electricity costs considered unsustainable, according to a company press release.

    Sidenor decided to cut 20 production days scheduled between now and the end of the year, a 30% reduction. "Sidenor is paying 227 euros per megawatt hour in October and the forecast for November and December reaches 284 euros, while last year it paid just over 60," said the statement.

    The partial stop of production will initially take place in Sidenor's central plant in Basauri (Basque Country).

    The measure, however, could involve other factories in the future, the company said.

    Electricity prices on the Iberian market have skyrocketed in recent months, causing alarm both for households and strategic production sectors.

    The Spanish government has set in motion several measures to try to contain the impact of these skyrocketing prices and has asked for the intervention of the European Union, arguing that it does not have sufficient tools to control the emergency autonomously.

    One of Spain's proposals is to encourage the collective purchase of natural gas, the costs of which also affect electricity prices.(ANSAmed).

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