Steel group ArcelorMittal shuts down German factories due to expensive gas | News

Steel group ArcelorMittal shuts down German factories due to expensive gas | News
Steel group ArcelorMittal shuts down German factories due to expensive gas | News

Steel group ArcelorMittal is shutting down factories in Bremen and Hamburg because the gas and electricity they run on have become too expensive. It is therefore no longer possible to make steel at competitive prices in those German cities, the company reports. In addition, a blast furnace at a Spanish factory is shut down because of the high gas prices.

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ArcelorMittal will shut down one of the two blast furnaces at the Bremen complex until further notice. A wire rod factory in Hamburg will close in the fourth quarter. Due to the high energy prices, the metal company from Luxembourg had already applied for short-time work for staff at the production locations. This measure, comparable to part-time unemployment benefits, is now being expanded further.

The Hamburg factory had already taken measures to significantly reduce gas consumption. For example, ArcelorMittal imported products for further processing for this location, which it previously made on site. According to the steel company, this import produces more CO2 emissions than in a normal situation.

High costs weigh on competitiveness

“The high costs of gas and electricity weigh heavily on our competitiveness. In addition, from October there will be the gas tax planned by the federal government, which will continue to tax us,” said Reiner Blaschek, chief executive of ArcelorMittal in Germany. He calls on German politicians to intervene quickly so that energy prices are brought under control.

Staff is at home

Not only staff in Bremen and Hamburg are forced to stay at home because of the high energy costs at ArcelorMittal. Short-time working is also occurring in Duisburg and Eisenhüttenstadt.

One blast furnace closes at ArcelorMittal’s steel factory in Gijón, Spain. Like the one in Bremen, this factory has two blast furnaces.

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The article is in Dutch

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