The UGT Euskadi union urges Sidenor to lead a merger of the major Basque steel companies to compete globally, in the context of the crisis at Tubos Reunidos and US tariffs.
The candidate for general secretary of UGT Euskadi, José Manuel 'Tximi' López, has launched an ambitious proposal: that Sidenor lead a merger of the major Basque steel companies to create a global steel giant. The statement comes at a critical time for the sector, with Tubos Reunidos immersed in a redundancy plan and the Amurrio plant at the centre of the conflict.
López, in an interview, pointed out that the current situation, with US tariffs and the fragmentation of the sector, makes a strategic alliance necessary. “I believe this could be the moment for Sidenor to consider leading a merger among the major Basque steel companies to create a giant capable of competing globally,” he stated.
The Tubos Reunidos crisis as a trigger
The immediate context is the delicate situation of Tubos Reunidos, which has presented a redundancy plan at its Amurrio plant. UGT has denounced that ELA, LAB and ESK have “hijacked the will of the workforce” by opposing the adjustment, artificially prolonging the strike. López reminded that the Labour Inspection has validated the reasons for the redundancy plan, making the adjustment inevitable.
“We do not foresee, given the timing, that there will be interested parties in the entire production unit. Therefore, it will be necessary to segregate, Trapagaran on one side and Amurrio on the other,” explained the union leader. The Amurrio plant faces a difficult exit, exacerbated by the investigation into the Leire case and the company's own crisis.
“It is time for Sidenor to lead a merger of Basque steel companies to create a global giant”
López has put forward the need for a “great Basque alliance for steel”, similar to the sector clusters that functioned during Patxi López's time. “Steel needs to be sold abroad and the US has tariffs. Small companies are struggling to seek new markets,” he argued.
The role of Sidenor and José Jainaga
The UGT proposal coincides with the idea already raised by Sidenor's own president, José Jainaga, regarding a possible business concentration. However, López clarified that the merger should not centralise all power in a single figure: “We must look out for job preservation.”
For the unionist, the Basque Government has limited resources and must prioritise support for companies with a larger number of employees. Therefore, a merger would allow for the optimisation of public aid and strengthen the international competitiveness of Basque steel.
The proposal comes at a time of union tensions at Tubos Reunidos, where UGT has had to appoint new delegates following pressures suffered by the previous ones. “They crossed the line, pointing and directly targeting anyone who deviated from the line set by these unions,” López denounced regarding the actions of ELA, LAB and ESK.
A sector in transformation
The Basque steel sector is undergoing a deep restructuring, with companies like Tubos Reunidos in bankruptcy proceedings and others like Sidenor holding steady. The merger proposed by UGT aims to create a group with financial muscle and investment capacity in R&D to face global challenges, such as US tariffs and competition from Asian countries.
For workers in the sector, the merger could represent a guarantee of long-term employment, although it would involve initial adjustments. López has insisted that the goal is to preserve jobs and avoid traumatic closures like the one threatening Amurrio.
For now, the UGT proposal remains on the table, awaiting a response from Sidenor and the Basque Government. What is clear is that the sector needs a clear roadmap to avoid missing the train of global competitiveness.
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