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Spain: Iron and Steel
Country Study > Chapter 3 > The Economy > Industry > Manufacturing > Iron and Steel

IRON AND STEEL


Spain's steel industry was located in the north at Vizcaya, Cantabria, and Asturias, and in the south at Sagunto, near Valencia. Though the steel industry had had an important presence in Spain since the second half of the nineteenth century, it had expanded greatly during the boom years of the 1960s and the early 1970s. Production had gone from 1.9 million tons in 1960 to 11.1 million tons in 1975, making the country the fifth largest steel producer in Europe and the thirteenth largest in the world. By the late 1970s, however, a worldwide glut in steelmaking capacity and the domestic economic slump had led to a severe crisis in the industry. Thereafter, the Spanish steel industry experienced an extensive contraction, not only in production capacity, but also in the size of its labor force.

Despite a 50 percent drop in domestic steel consumption, production remained at about 13 million tons per year during the early 1980s, and it reached a high of 14 million tons in 1985. High production levels were maintained through extensive exports; the two largest steel producers, the state firm ENSIDESA, and the Basque company, Altos Hornos de Vizcaya, were among the nation's most important exporters after the large automobile companies. Both of these companies and most other steel companies operated with heavy losses, however.

Membership in the EC and in the European Coal and Steel Community (ECSC) committed Spain to cutting back its iron and steel output and to reducing its overall capacity. Steel output declined almost 16 percent in 1986, to 11.8 million tons, and it fell to a slightly lower level in 1987. The government's efforts at restructuring the steel industry continued during the later 1980s with the creation of Acenor, which consolidated the producers of special grades of steel and became Western Europe's sixth largest firm of this kind. The large blast furnaces at Sagunta were shut down, and the government, which already controlled ENSIDESA and Altos Hornos del Mediterraneo, both INI firms, took a 40 percent interest in Altos Hornos de Vizcaya.

Data as of December 1988




Last Updated: December 1988


Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for Spain was first published in 1988. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on Factba.se.

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