Energy costs, regulation see drastic steel output reduction at German factory – Thyssenkrupp

Steelmaker Thyssenkrupp has announced a substantial production reduction at its site in Duisburg in western Germany, a step that will also lead to job cuts for its roughly 13,000 employees at the location, public broadcaster WDR reported. The country’s largest steelmaker said high energy costs and tight emission reduction regulation contributed to its decision to reduce steel output in Duisburg by about two million tonnes per year. Other reasons include “increasing pressure from imports, especially from Asia” and a generally difficult market environment in the steel industry. The company did not specify how many jobs will be affected by the decision but said that it would lead to reductions in production, processing, and administration. Labour council representatives of the company were due to meet in Duisburg today (12 April) to hold talks with Thyssenkrupp’s management and ensure that the steps are coordinated to save as many jobs as possible.

Concerns about losing energy-intensive companies and industrial production capacity have increased greatly in Germany as a result of the energy crisis, which saw prices spike to record values in 2022, particularly due to the loss Russian pipeline gas in the context of its war on Ukraine. Despite prices falling back to much lower levels across the board since the height of the crisis, companies have voiced concerns that production conditions in the country remain negatively impacted in the long-run, as prices could remain higher than they were before the crisis also in the long-run.