Link Securities | Tubacex (TUB), the Alava-based tube manufacturer with a significant portion of its business focused on the oil and gas industries, is already feeling the effects of the war in Iran and has announced to the unions temporary adjustments should the fall in sales persist as a result of the closure of the Strait of Hormuz, according to the newspaper Expansión.
Tubacex states that, in light of the decline in orders resulting from the conflict in the Middle East, it is considering temporary workforce adjustments.
In a letter sent to its trade unions, with whom it has been negotiating the renewal of the collective agreement for two years now, Tubacex’s management highlights the negative impact of the war in Iran and the closure of the Strait of Hormuz on its operations. The difficult international geopolitical context, which is intensifying with the conflict in Iran, coincides with a time when the pipe manufacturer was expecting a boost from its new pipe finishing and threading plant in Abu Dhabi. These facilities – which form part of the €1 billion mega-contract with Adnoc – were expected to deliver ‘significant growth’ for Tubacex in 2025 and 2026.
