Altos Hornos del Mediterráneo facts for kids

Altos Hornos del Mediterráneo S.A. (AHM) was a Spanish company that made metals like iron and steel. It was started in 1971. Its main job was to run a big factory in Sagunto, Spain, that made iron and steel from start to finish. This factory was known as the 4th Integral Ferrous Metallurgy Plant in Spain.

When AHM was created, it took over older factories that another company, Altos Hornos de Vizcaya, had owned in Sagunto since the early 1900s. However, AHM faced big problems because of a tough economic time in Spain during the 1970s and 1980s. Because of these problems, the government decided to close down its operations in 1984.

History

How AHM Started

A long time ago, in 1917, a large factory complex for making iron and steel was built in Sagunto. This factory belonged to a company called Altos Hornos de Vizcaya (AHV). In the 1940s and 1950s, this factory got its iron from mines in Ojos Negros. The iron traveled to the Port of Sagunto by a special train line called the Ojos Negros-Sagunto railroad. They also used iron from mines in Minas del Rif.

By the late 1970s, AHV wanted to build an even bigger iron and steel factory. They decided to put this new factory in Sagunto, right where the old AHV complex was. At this time, the iron ore came from Sierra Menera and Minas de Alquife.

To make this new factory happen, the company Altos Hornos del Mediterráneo (AHM) was created in 1971. Soon after, the Spanish government at the time gave AHM the job of building this 4th Integral Ferrous Metallurgy Plant. The new company used the old AHV factories in Sagunto. Companies like Altos Hornos de Vizcaya and U.S. Steel helped create AHM, along with several banks.

AHM was started when there was a high demand for iron and steel products in Spain. In 1972, people in Spain used 19.2% more steel than in 1971. Even though 1971 had low demand, the overall trend was growing. A lot of money was being invested in the steel industry. For all of Spain, about 14.5 billion pesetas were invested each year. A plan for making metal predicted that by 1975, each person in Spain would use 358 kilograms of steel. This was similar to how much people in France used in 1967. However, things did not go as planned.

Problems from the Crisis

A big economic problem called the economic crisis of 1973 hit the iron and steel industry in 1975. This crisis badly affected AHM. The company started losing more and more money and had to change how it was run. By 1974, there were already bad signs: the amount of steel used in Spain had dropped by 7.3%. Also, the company had too much steel that it couldn't sell. In 1976, a new machine that flattens cold metal was added.

The crisis caused Altos Hornos del Mediterráneo to lose 3,568 million pesetas in 1977. This made it hard to expand the factory or even pay workers on time. For example, workers' pay for late 1977 was not paid until January 1978. In December 1977, new leaders were chosen for AHM and Altos Hornos de Vizcaya. This meant the two companies would now be managed separately.

On December 23, 1978, a new law was passed to help the metal industry. With this law, the National Institute of Industry (INI), a government group, bought a part of AHM. But this plan was not enough. By 1979, INI became the only owner of AHM. In 1980, the Spanish metal industry lost 38 billion pesetas, and 1981 looked even worse. This led to a new government plan in 1981 to fix the industry. Out of a huge amount of money set aside to help the iron and steel industry, 33,173 million pesetas were given to AHM.

Blast furnace # 2.

However, the 1981 plan also wasn't enough. A big problem was deciding where to put a special machine called a hot strip mill (TBC). This machine flattens hot metal into thin sheets. Only one of the three main metal companies would get it. These companies were in different regions of Spain: Altos Hornos de Vizcaya in the Basque Country, Ensidesa in Asturias, and Altos Hornos del Mediterráneo in the Valencian Community.

To decide where the TBC should go, the government asked a company called Kawasaki to study the industry. The Kawasaki Report suggested putting the TBC in Sagunto. It also said that other factories should not build certain types of steel mills. This made people in Asturias and the Basque Country very upset. Because of this, the different groups could not agree.

The End of AHM

The government made its decision in a new law in 1983. This law allowed the other two companies to change their hot strip mills, but it did not approve the one in Sagunto that the Kawasaki Report had suggested.

On February 4, 1983, the Council of Ministers (a group of top government officials) decided to close the main factory in Sagunto. This meant taking apart the big ovens (blast furnaces), but keeping the rolling mill (which flattens metal). On February 8, the regional government of Valencia asked the national government to temporarily stop the closure.

Workers in Sagunto held big protests and strikes on February 10, 12, and 16. The protests continued in March when the Minister of Industry said the government still planned to close parts of factories at Ensidesa, AHV, and AHM. During the local election campaign in May 1983, protests continued. For example, on April 27, people protested before an event of the PSOE, which was the ruling party at the time. More strikes happened after the elections in June and July.

On September 9, AHM's management told the workers' group that a certain machine (train number 28) would not be used again. But the workers started it up anyway. Because of this, 82 workers were fired. However, the government stepped in, and the firings were stopped.

Even with all the protests from the people of Sagunto—including fifteen general strikes in 1983, blocking a highway, and demonstrations—the Minister of Industry announced on December 15 that blast furnace number two would close on December 21. He also announced a plan to help workers who would lose their jobs. A few days later, as part of a plan to bring new industries to Sagunto, the government announced that several new companies would be set up there.

On February 2, 1984, there was a day of protest across Spain to support the AHM workers. On April 4, 1984, an agreement was reached between the INI, the main worker unions (UGT and CCOO), and the workers' committee of AHM. This agreement was for the main factory in Sagunto to close without any workers being laid off. The factory stopped working on October 5, 1984. In 1984, AHM made 28,323 million pesetas and had 3,332 workers. The rolling mill part of the factory became the basis for a new company called Siderúrgica del Mediterráneo.

The company Altos Hornos del Mediterráneo S.A. officially closed down on January 13, 2004.

See also

In Spanish: Altos Hornos del Mediterráneo para niños