The high cost of electricity forces the stoppage of steel mills, paper mills and factories in the Basque Country

The unstoppable increase in the price of electricity, the scarcity of raw materials and the lack of supply that has generated the war in ukraineis affecting Basque companies from different sectors.

In the steel sector, Arcelor is stopping the Olaberria plant during the most expensive hours, and today it has confirmed that it will not resume activity in the factory KBA of Sestao this Sunday, as planned, “because the situation is unsustainable”.

The latest companies to join the list are paper mills, which consume large amounts of electricity in their processes.

the italian group Lucart for from today its plant in Aranguren and the paper mill Cominter de Hernani it will do the same at the end of the week, if no action is taken to stop the escalation in prices.

The scarcity of some raw materials and supplies is also affecting sectors such as the automotive industry. Michelin it will stop two weekends and Mercedeswith previous problems already, all this week.

According to the employers’ association Adegi, six out of ten Gipuzkoan companies are suffering in one way or another the consequences of the war between Russia and Ukraine.

The Minister of Economic Development, Sustainability and the Environment, Arantxa Tapiastated yesterday that both the Basque Country and the European Union are in a situation of “energy emergency”which requires “extraordinary and forceful” measures by the EU because, if the current price escalation continues, electro-intensive companies will be “doomed to stop”.

For his part, the Lehendakari, Inigo Urkulluconsiders that the invasion of Ukraine by Russia is generating a “war economy” and has warned that the consequences are and will be severe.