Acerinox to Implement New Productive Model at Los Barrios Factory, Reducing Shifts

Acerinox Group has announced a significant restructuring at its Los Barrios factory in Cádiz, Spain, reducing the number of shifts from five to three. The decision comes in response to challenging market conditions and financial performance in recent years.

The new productive model aims to address the company's financial performance and adapt to the current market environment. Acerinox achieved a record EBITDA of €703 million in 2023, with a revenue of €6.6 billion and a net profit of €228 million. However, despite these figures, the company has faced ongoing challenges that necessitate a shift in its operational strategy.

Acerinox is committed to negotiating a collective bargaining agreement to assess the impact on the current workforce levels. The company has been dealing with protests from employees over disagreements regarding a proposed new collective bargaining agreement, which led to considerations of a temporary shutdown of the Spanish plant.

In addition to the changes at the Los Barrios factory, Acerinox has announced the shutdown of its Bahru Stainless plant in Malaysia. Deliveries to customers from the Bahru plant will be managed through other facilities within the group.

The restructuring of Acerinox's Los Barrios factory has significant implications for the global stainless steel market and the economy of Spain. The reduction in shifts and shutdown of the Bahru Stainless plant may lead to job losses and affect the supply chain, consequently impacting the industry's overall performance.

The reduction in shifts at the Los Barrios factory is a strategic move to ensure the plant's sustainability and efficiency. By streamlining operations, Acerinox aims to better align production with current demand and market conditions.

This restructuring marks a critical moment for Acerinox as it charts a course through the complex environment of the global stainless steel market. The company's efforts to adapt and optimize its operations reflect a broader trend of industrial realignment in response to economic pressures.

Acerinox's decision to reduce shifts at its Los Barrios factory and shut down the Bahru Stainless plant highlights the company's commitment to maintaining operational efficiency and financial stability. These measures are expected to help Acerinox overcome the current market challenges and position itself for future growth.

Key Takeaways

• Acerinox reduces shifts at Los Barrios factory from 5 to 3 due to market conditions.
• Company aims to adapt to current market environment and improve financial performance.
• Acerinox to negotiate collective bargaining agreement with employees.
• Bahru Stainless plant in Malaysia to be shut down, deliveries to be managed from other facilities.
• Restructuring aims to ensure sustainability and efficiency at Los Barrios factory.