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Arcelor-Mittal’s production cut to affect Gijon & Aviles ports

Steel News - Published on Tue, 14 May 2019

Image Source: SteelGuru
PortSEurope reported that the production cut of 700,000 tonnes that ArcelorMittal will apply in the factories of Asturias will be accompanied by redundancy schemes. But in addition, it will have effects outside the steelworks. The most immediate will be in the ports of Gijón and Avilés. The planned cut in the blast furnaces of Gijón and the steel mill of Avilés is equivalent to 16% of the annual steel production of ArcelorMittal in Asturias, a rate that if transferred to the shipments and landings of raw materials and products related to the steel company, equivalent to 112 ships that will stop using the docks of the ports of Gijón and Avilés every year.

The management of ArcelorMittal has not yet announced when it will begin to implement the announced plan to cut production in Europe, which also affects the Krakow factory in Poland and Taranto in Italy. However, in the meeting that the management of the company held with trade unions the company reported that the production cuts in Asturias will be taken into account this month when planning raw materials supply for the third quarter.

In Gijón, more than 44% of the traffic is linked to the activity of the Arcelor-Mittal factories. In 2017, of the 14.5 million tonnes that were handled in the solid bulk terminal (EBHI), 9.1 million corresponded to Arcelor-Mittal. Another 562,511 tonnes are corresponding to general cargo moved in the terminal that Arcelor-Mittal has in El Espigón 1, bringing the total to more than 9.6 million tonnes without taking into account some products that are shipped in containers – like wire rod for French tyre factories. If the expected cut in production of 16% is transferred to these goods, more than 1.5 million tonnes would disappear.

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Posted By : Sanju Moirangthem on Tue, 14 May 2019
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