Frankfurt (Germany) (AFP) – Europe’s largest steelmaker Thyssenkrupp is to pause steel production at two sites for about two weeks because of Asian competition, the German firm said Thursday, as the European Union considers tightening its steel tariffs. Specialist sites in Gelsenkirchen in western Germany and Isbergues in northern France that make high-end steel would close from mid-December to the end of the year, Thyssenkrupp’s steel subsidiary said. The French site would further run only at half-capacity for at least four months from January, it added.
The measures were in response “to a massive increase in low-priced imports, particularly from Asia,” Thyssenkrupp Steel Europe said. “These developments have led to a dramatic change in order volumes and thus to a significant underutilisation of capacity at European production facilities.” Hammered by exorbitant energy costs and cheaper Asian competition, Germany’s steel industry has been mired in deep crisis for several years.
Thyssenkrupp Steel Europe said in November last year it would seek to cut or outsource 11,000 jobs by 2030 — about 40 percent of its workforce –- and cut production capacity to around nine million tons a year, down from 11.5 million. Taking a leaf from US President Donald Trump’s book to shield the bloc’s struggling industry from cheap Chinese imports, the EU in October floated plans to double tariffs on foreign steel and cut the amount allowed in tariff-free.
“The rapid implementation of efficient and appropriate trade protection measures at European level would help to increase capacity utilisation at both locations back to a sustainable level,” Thyssenkrupp Steel Europe said, adding that about 1,200 people were employed at the two sites. The wider Thyssenkrupp group said on Tuesday that it expected to make a loss of up to 800 million euros ($932 million) next year, largely driven by the costs of restructuring its steel division.
© 2024 AFP
