11,000 jobs to go German steel company cuts thousands of jobs

The number of jobs in Thyssenkrupp's steel division is to be reduced from the current 27,000 to around 16,000 within six years. As the company announced in Duisburg, 5,000 jobs are to be cut by the end of 2030 and a further 6,000 jobs outsourced to external service providers or business sales.

The company, which is majority-owned by industrial group Thyssenkrupp, is thus reacting to the weak demand on the steel market. Production capacities are to be reduced from the current 11.5 million tons per year to just 8.7 to 9.0 tons. This corresponds to the shipment volume of the previous financial year.

The aim is to create long-term prospects for as many employees as possible, says Thyssenkrupp's Head of Steel Dennis Grimm. The company will therefore adapt to the changed market conditions through targeted capacity adjustments and cost reductions. "Comprehensive optimization and streamlining of our production network and processes is necessary to make us fit for the future."

In parallel to the cost-cutting program, parent company Thyssenkrupp intends to press ahead with the spin-off of the steel division. The Czech energy company EPCG, owned by the Czech billionaire Daniel Kretinsky, currently holds a 20 percent stake, which is to be increased to 50 percent in a next step.

Green steel plant to be built further

Germany's largest steel company has long been under pressure; cheap imports from Asia, high costs and weak demand have led to loss-making business. In terms of climate protection, large investments are also needed to improve the CO2 balance of energy-intensive steel production. In Duisburg, "green steel" is to be produced using hydrogen in the future; the federal government and the state of North Rhine-Westphalia are funding an expensive new plant with a total of two billion euros.

Despite the substantial financial injection from the state, the project is an expensive affair for Thyssenkrupp Steel. According to media reports, an exit from the project had been considered internally. The company is now emphasizing that it is sticking to its plan to complete the direct reduction plant, which is already under construction. At the same time, "constructive talks" are being held "to ensure the profitability of this major investment project under the rapidly changing conditions".

dpa