BERLIN (dpa-AFX) - Global overcapacity, dumping prices, especially from the Far East, high energy costs, difficult "green" transformation: the steel industry is facing difficult times. "The year 2025 will decide the fate of the German steel industry," said the General Works Council of Germany's largest steel manufacturer Thyssenkrupp Steel.

Following a steel summit in Berlin, Federal Chancellor Olaf Scholz (SPD) promised the industry his support. However, he is in a weak position as the red-green government no longer has a majority in the Bundestag following the collapse of the traffic light coalition.

Steel industry in crisis

Following a meeting with industry representatives, works councils and trade unions in the Chancellery, Scholz emphasized the importance of the steel industry. "The steel produced here is of the utmost geostrategic importance for industrial production in Germany and therefore for our economic growth."

Germany is the largest steel producer in the EU. According to the industry, the most important customers are the construction industry, the automotive industry and mechanical engineering. According to the Federal Statistical Office, around 71,000 people were employed in the industry at the end of September.

However, the companies are in a difficult situation. In November, Thyssenkrupp Steel announced that the number of jobs in the steel sector would shrink by 11,000 to 16,000 within six years. Employee representatives and IG Metall are threatening long-term resistance.

The union is also opposing a possible takeover of the Salzgitter steel group by the companies GP Günter Papenburg and TSR Recycling. IG Metall fears a considerable impact on employment should Salzgitter lose its independence.

Scholz searches for solutions

As expected, there were no concrete results at the steel summit. Scholz reaffirmed the plans of the red-green federal government to reduce grid fees and thus relieve energy-intensive companies of electricity costs. However, he needs support from the opposition for this.

The CDU/CSU has already rejected the plans. Scholz also did not rule out the possibility of a state holding in Thyssenkrupp Steel. He told the Funke Mediengruppe: "I am not taking any option off the table now."

At EU level, Scholz is campaigning for a European steel summit in the near future, according to government spokesman Steffen Hebestreit. Important relief instruments for the steel industry must remain in place or be improved. The Commission must act decisively when it comes to distortions of competition caused by dumping and subsidies. The EU authorities must examine further trade protection measures. However, no quick results are to be expected at EU level.

Steel industry expects relief

"The steel industry in Germany is acutely threatened by unfair competition on the global markets," said Gunnar Groebler, President of the German Steel Federation. "This is why effective foreign trade protection is urgently needed to put a European stop to state-subsidized exports from third countries." It is high time for a European steel summit at which appropriate measures are clearly and bindingly set in motion.

Jürgen Kerner, Second Chairman of IG Metall, said that the German government's plan to cap electricity grid fees at three cents should not be delayed until the next government. "We need an internationally competitive electricity price now."

Tekin Nasikkol, Chairman of the General Works Council of Thyssenkrupp Steel Europe AG, called for targeted industrial policy measures to be put on the agenda and implemented immediately. "Otherwise we will lose more and more competition in our key industries and therefore our future."

Green restructuring

The steel industry is one of the largest CO2 emitters. The German government is calling for a "green" conversion worth billions. The steel industry is dependent on large quantities of hydrogen for this. However, there is a risk of delays in setting up a supply network. Thyssenkrupp boss Miguel López had called for a faster development of a hydrogen pipeline network in Europe.

Union speaks of "show summit"

The economic policy spokesperson for the CDU/CSU parliamentary group, Julia Klockner, spoke of a "show summit" in the Chancellery. "The remaining coalition no longer has a majority and can no longer implement anything on its own."

Left-wing economic politician Jorg Cezanne said that the traffic light coalition had failed on two key points. No industrial electricity price had been implemented and no provision had been made to stretch the grid fees through loans: "Now many electric steel stoves are in acute danger of going bankrupt due to this cost explosion."/hoe/DP/jha