Final approval of assistance for ArcelorMittal’s decarbonization plan in Asturias still remains waiting “last minute fringes”, as acknowledged by Ministry of Industry sources on Tuesday. On Monday, Vice-President of the Principality Juan Cofiño assured that approval would be “soon”, but at the moment the path is not entirely clear and uncertainty remains at a time when it is not known whether the blast furnace will open. The building, which will burn down last Wednesday, will be repaired or permanently closed two years before the end of its useful life.
Mittal family and Prime Minister Pedro Sánchez, In July 2021 it announced a €1,000 million plan to replace one of the two blast furnaces by 2025. Gijón, which caught fire last week for a direct iron ore reduction plant (DRI system) with a hybrid electric arc furnace powered by green hydrogen and renewable energy. After more than a year and a half of negotiations and procedures, on 17 February, the European Commission authorized $460 million in aid for the decarbonisation plan, but now it should be the Spanish Government granting it through a royal decree that is still pending. “Last-minute marginal,” according to Ministry of Industry sources.
At the last meetings held by ArcelorMittal management and worker representatives, both ERTE in connection with the company’s framework agreement in Spain and the blast furnace fire, unions demanded that the company approve its decarbonization plan to remove uncertainties. However, according to the centers, management has responded so far: Government does not approve of European aid, company does not approve of investment. Therefore, unlocking is dependent on royal decree and is still unconfirmed for now.
Regional Vice President Juan Cofiño announced on Monday that the Council of Ministers will approve the aid “at its next meeting” – yesterday when the issue was not discussed – “or at its next meeting” and blast furnace accident will not risk the investment.
ArcelorMittal this Tuesday proposed to the workers’ representative office of Asturias factories significant changes in working conditions to simplify the procedures for changing shifts and working hours, to change the consolidation guarantees of a higher category and the obligations of workers working on a normal working day. they receive economic guarantees of shifts to return to work in their home regime. in return, offered an increase in holiday installment supplementan increase in the salary of new staff and an increase in the enjoyment of the days created by overtime.
Inspecting the damage inside the damaged furnace will still take several days.
Javier Cuartas
Technicians will take several days to examine the interior of the ArcelorMittal blast furnace last Wednesday to determine damage, according to multinational sources. Although the removal of pig iron (cast and incandescent iron) and slag deposited in the ladle was completed on Monday, access by technicians is awaited to complete the clean-up task. The main purpose of the “in situ” inspection is to know exactly the extent of the puncture the crucible (an essential component) suffered as a result of the explosion and subsequent fire of blast furnace A. It was made in the protection of the refractory material and other components of the plant. The report, which will be presented to the management of the multinational company, is decisive in the decision of the company and the investment committee to repair the furnace or to stop it permanently. While the final data is awaited, the company speaks of a serious malfunction and an expensive repair. In work environments and the Principality, restoration is relied upon to fix the damage. Other similar precedents are mentioned in the union media, where similar malfunctions are always repaired in other factories of the group. Among the technicians involved in the preparation of the report are ArcelorMittal experts who have experienced similar situations in other countries such as the USA. The different reality in the Gijón furnace is that whatever the ultimate number and extent of actual damages, the plant is nearing the end of its useful life. It was estimated that the furnace could continue to be operational until 2025, even extending the originally planned end of 2024 date. One of Gijón’s two bakeries represents a significant reduction in activity. On Friday, the group will begin negotiating a force majeure ERTE in four regions.