ESSEN (dpa-AFX) - Thyssenkrupp CEO Miguel López has underlined the urgency of the announced capacity reduction in the steel division and the planned energy partnership with EPCG. "Despite a long tradition and a high level of technical expertise, the future of our steel industry is massively at risk today," López told journalists on Wednesday. Demand is too low, the costs, particularly for energy, are too high and overcapacity is putting pressure on prices. In addition, there are cheap imports from Asia. "That's why something has to change." This is why important steps have been taken in recent weeks to make the steel sector fit for the future.

"We want steel that earns money sustainably - so much money, in fact, that we manage the transformation to green steel," said López. This is also being done for Germany as a business location in order to secure the supply of high-quality steel for the domestic industry. The government's demand for the direct reduction plant is therefore an important investment in Germany's green transformation.

Thyssenkrupp is planning a significant reduction in steel production capacity in Duisburg, which is to be accompanied by job cuts. Details have not yet been disclosed. In addition, the EPCG holding company of Czech billionaire Daniel Kretinsky is to take over 20 percent of the steel division, and later 50 percent. This will primarily involve energy supplies.

"We want high-quality steel to continue to be produced in Duisburg in the future," emphasized López, "steel that Germany needs and for which our country should not become completely dependent on other countries for reasons of resilience alone. After all, a large part of our country's prosperity is based on steel."

The Thyssenkrupp steel division is Germany's largest steel manufacturer and employs around 27,000 people. Around 13,000 of these work in Duisburg. Almost all of Thyssenkrupp Steel Europe's sites are located in North Rhine-Westphalia.

López emphasized that the restructuring plans will "naturally" be discussed with the Works Council and the Supervisory Board of Steel Europe, including the impact on employment. In the past, employee representatives had accused the Thyssenkrupp Executive Board and López in particular of failing to keep them sufficiently informed and involve them in important decisions./tob/DP/nas