MEGASA FORCED TO STOP PRODUCTION DUE TO HIGH ELECTRICITY COSTS

The steel mill of the Galician steel group Megasa, in Zaragoza, has been producing for the past two months only at night and on weekends to take advantage of the hours when electricity was less expensive, but since last December 13, not even that. It has completely stopped production, due to the exorbitant price of electricity that prevents it from continuing to operate.

For months, the company had been warning that the situation due to the exorbitant price of electricity was unsustainable and the worst predictions have come true. It will not resume production until after Epiphany. For the time being, this paralysis will not affect employment. The steelworks has a workforce of around 233 workers in Zaragoza who are currently carrying out maintenance work, although the company does not rule out taking other more drastic measures.

Last August, the energy crisis left a record of 106 €/MWh, and now have tripled to reach 300 euros. A few years ago there was a premium for uninterruptibility for electricity-intensive companies, but that disappeared.

Last September, Megasa announced an investment of 60 million euros in this factory to carry out an almost complete refurbishment of the second rolling mill. The aim is to diversify and to be able to reach the European market with different products, while maintaining its annual turnover, which in 2020 reached 216 million euros.