The Ecuadorian ministry of labor suspended activities at local steelmaker Acería Xinlong S.A, SteelOrbis has learned.
The ministry made a site inspection on April 1, and found out the mill located in the city of Milagro, in the Guayas province, did not comply with several labor rules, including safety and health regulations. As a result, the ministry opened an “administrative proceeding,” the Ecuadorian ministry said, which means the mill will be halted for an indefinite period of time.
The ministry also found out the steelmaker hired foreign workers with no proper documents and lacked formal work contracts for other employees.
A media report by El Comercio noted the steelmaker had already failed to meet labor requirements in the past. The company denied any wrongdoing.