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- NLMK to focus on hot-dip galvanized and pre-painted in its strip product coating business - announcing its intention to close the electro-galvanizing facility located in Beautor
NLMK to focus on hot-dip galvanized and pre-painted in its strip product coating business - announcing its intention to close the electro-galvanizing facility located in Beautor
NLMK has announced today at a local works council meeting its intention to close the electrogalvanizing facility in Beautor. The hot-dip galvanizing and pre-painted lines based in Strasbourg will not be impacted.
NLMK has been implementing its Strategy in Europe since 2013, focusing on operating efficiencies in the European facilities and rationalizing excess capacity. This has positively changed the competitiveness of the strip products business which has seen significant volume growth in 2015.
The site of Beautor has however suffered a shrinking global market for electrogalvanized steel due to a strong decline of demand for automotive applications. The company has anticipated the current announcement by looking for a buyer since March 2015.
During the coming months the company and unions will work on possible solutions as well as a possible social plan to support affected workers. Should the current process lead to a closure, the company will work with its customers on short and long term solutions to ensure a smooth transition of business which is currently carrying on in a normal way.
“The development and sale of hot-dip galvanized and pre-painted steel produced for NLMK Coating SA at its Strasbourg subsidiary will continue as before. We have seen a good growth in volumes out of Strasbourg and will continue our development during 2016” says Jaap Piso, Commercial Director Strip Products for NLMK Europe.