The German Steel Industry at a Crossroads
Image courtesy of : AFP (TOBIAS SCHWARZ)
The German steel industry is facing a critical moment as plans to sell Thyssenkrupp Steel Europe to Czech billionaire Daniel Kretinsky have sparked significant concern. Bundestag President Bärbel Bas has warned that this sale could spell the end of the industry, putting thousands of jobs at risk. The potential sale has been criticized for inadequate financing and an aggressive campaign against the management of the steel division. The industry's future hinges on substantial state support beyond the already promised two billion euros for a hydrogen plant in North Rhine-Westphalia to ensure climate-neutral steel production.
The National Steel Summit in Duisburg, called by the Steel Alliance of eleven federal states, is a pivotal event. Federal Minister of Economics Robert Habeck is expected to attend, signaling the government's commitment to addressing the industry's challenges. The summit aims to discuss the transformation towards green steel and the necessity of affordable energy and green hydrogen. Key stakeholders, including the Economic Association Steel and IG Metall, emphasize the need for competitive industrial electricity prices and protection against cheap imports.
Minister President Hendrik Wüst has urged Thyssenkrupp to clarify its future structure and embrace co-determination, reflecting the deep-rooted tradition in Germany. The internal strife within Thyssenkrupp, marked by public dismissals and resignations, underscores the urgency for a clear path forward. As the industry grapples with global competition, the automotive crisis, and the shift to climate-friendly production, the transformation is seen both as a challenge and an opportunity. The German steel industry's survival will depend on decisive action and collaboration between politics and industry.
