The Spanish steel industry seeks faster talks with Brussels to extend PERTE project deadlines
The Spanish steel sector, led by the national association Unesid and including ArcelorMittal along with 45 other steel producers, has urged the government to press for rapid negotiations with the European Commission. The goal is to extend the implementation period for projects funded under the Mechanism. According to Unesid’s general manager Andrés Barceló, the sector faces immense challenges in completing investments within the current timetable. He notes that delays in the supply chain for engineering and capital goods have not been fully accounted for. While the March 31, 2026 deadline remains in place, there are discussions about possible extensions to implementation timelines. Barceló described the situation as an insurmountable obstacle today.
The concerns center on the first PERTE track, the Strategic Decarbonisation Project for Recovery and Economic Transformation, which has public aid totaling 1,000 million euros from the European Next Generation program under the Ministry of Industry. Unesid has sought to bring this issue to the public agenda and ensure the plan reflects real industrial conditions.
The tight deadlines may also affect the second PERTE line, which has received 450 million euros to replace coal with green hydrogen at the Gijón steelworks, part of ArcelorMittal’s decarbonization plan. One of the two Veriña blast furnaces is set to be equipped with a direct reduction furnace, a key step in reducing emissions. ArcelorMittal has not yet confirmed the final investment timeline for this project, which constitutes its largest decarbonization effort. The company is evaluating achievable implementation times and energy pricing before committing definitively.
Unesid is calling on the Ministry of Industry to quickly secure negotiations with the European Commission so that program management aligns with industrial needs and regulatory realities. The association argues that both the public consultation phase and the project execution window are unusually short, and it regrets the heavy administrative burden tied to the new PERTE call. The call, it says, risks creating unnecessary friction that slows down essential investments.
In light of these concerns, Unesid expresses worry that PERTE aid may not align with the sector’s needs and has announced plans to discuss the matter further. The group also objects to perceived regulatory gaps in the 1,000 million euro line that would permit projects to proceed with a reduced minimum budget and through non-competitive processes. This could lead to approvals based on limited project assessment rather than a comprehensive, comparative evaluation of all proposals.
Unesid argues that this artificial allocation could trigger a flood of applications and approvals, potentially favoring a broad spread of submissions over truly transformative initiatives. The concern is that scarce resources would be directed to projects that may not deliver the highest impact in areas facing strong international competition and rapid industrial shifts.
Within PERTE documentation, industries note the challenge of implementing a competitive process when many subsectors possess distinct characteristics. Differences in technology needs, emission profiles, company sizes, and market dynamics complicate direct comparisons and fair allocation of funding. This heterogeneity complicates judgments about which projects offer the greatest return and how to measure progress across a diverse industrial landscape.
The executive lead of the steel sector pursues strategic realignment in Kazakhstan
ArcelorMittal and the Government of Kazakhstan have reached a framework agreement to nationalize the companys interests and operations within the country. The move emerged after a mine accident in Kazakhstan, which claimed multiple lives, and was noted by global media. The company has indicated that talks about transferring ownership of ArcelorMittal Temirtau to the Kazakh authorities began several months prior, with an agreement in principle signed recently before the accident occurred. ArcelorMittal stated its commitment to completing the transfer as promptly as possible. The group has a history in Kazakhstan dating back to the 1990s and operates iron and coal mines as well as a steel plant there. Following the announcement, ArcelorMittal shares on the Madrid Stock Exchange experienced a notable decline in value.