Industries stop in Spain due to lack of supplies and rising prices

Madrid, March 26 (Latest) .- To the supply problem caused by an indefinite strike of carriers have been added those derived from the energy crisis due to the Russian invasion of Ukraine, which has forced multinationals with factories in Spain to stop their production and has generated a lack of supply that affects industry and consumers.

The difficulties in receiving certain components, discharging production or paying the costs of maintaining their activity force these companies to apply new temporary employment regulation files or give their employees vacations while waiting for the situation to normalize, while others resort to layoffs.

One of the first to stop was the dairy sector, which on March 17 suspended its activity due to the interruption in the supply of milk and in the transfer of the final product, according to the National Federation of Dairy Industry.

French dairy group Danone has cut production at two of its seven plants, while Swiss multinational Nestlé has warned that its factories are “seriously affected”.

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The producers of strawberries and red fruits of Huelva (south) have a shortage of containers and packaging to remove the fruit and transport it to the markets, a problem that also affects other products that are also important for Spain, such as olive oil, or multinationals such as Heineken brewery.

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The automotive sector already had problems such as the lack of semiconductors before the war in Ukraine and the carriers’ strike, which will be thirteen days this Saturday, but the current situation makes its activity even more difficult.

To the specific stoppages of two weeks ago have been added that of the American Ford, while the French Renault will stop its activity partially due to the shortage of parts.

The German Volkswagen stopped last Monday and SEG Automotive on Friday, as did the Japanese Bridgestone. Another tire manufacturer, the French Michelin, has totally or partially paralyzed production in several plants during this weekend and next due to “supply difficulties”.

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The activity is suspended in steel factories of the Spanish Global Steel Wire, Reinosa Forgings & Castings and Cristian Lay, the French Saint Gobain or the multinational ArcelorMittal.

The Orovalle mining company, dedicated to the extraction of gold, copper and silver, has proposed a temporary regulation that will affect 480 workers, 40 percent of its workforce.

Despite having closed a specific agreement with the Government for the fishing sector, fleets from different parts of the country are still moored waiting for the end of the carrier strike, which maintains a part of the sector while the majority has reached an agreement with the Government that provides for some 1,050 million euros in aid to alleviate the increase in fuel prices.

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