Thyssenkrupp will close its Galmeda plant in Spain

Germany's Thyssenkrupp is closing its Spanish plant Galmed (FBA9), located near Valencia, the company confirmed when contacted by Callanish. The Sagunto plant can produce 450,000 tons of hot-dip galvanized coils per year. The material is mainly supplied to the automotive sector.

The German steelmaker says it is taking the measure due to "a significant deterioration in the European automotive market and a subsequent decline in demand for galvanized steel products in Spain and southern Europe." Thyssenkrupp confirms that it has carried out a detailed analysis of the profitability of ten of its lines. The result showed that the closure of FBA9 is inevitable from an economic point of view.

“The Sagunto production line is already severely underutilized and this trend will increase in the short term; in the near future it will no longer be possible to economically operate the line,” the company admits.

Thyssenkrupp confirms that the closure of the Galmed plants will be completed within 12 months and the companies will offer “viable solutions” to their 120 employees. This includes discussions with PowerCo, the battery division of the Volkswagen Group, to identify employment opportunities.

Thyssenkrupp previously closed its FBA9 plant and laid off 165 workers in 2013 due to low market demand. The company reopened the plant three years later after widespread protests and political pressure.