The world’s largest steel group, ArcelorMittal, is temporarily closing two plants in Bremen and Hamburg due to high energy costs. Both factories already have short-time working, which is now being expanded. There is also a reduction in working hours at the production locations in Duisburg and Eisenhüttenstadt.
From the end of September, the group will shut down one of the two blast furnaces at the Bremen flat steel site until further notice.
The direct reduction plant in the Hamburg long steel plant will also be shut down from the fourth quarter due to the current situation and the negative outlook.
“No longer competitive”
“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 German boss Reiner Blaschek. With gas and electricity prices increasing tenfold in a few months, one is no longer competitive in a market that is 25 percent is supplied by imports “We see an urgent need for political action to bring energy prices under immediate control.”
Raw materials and pollution rights more expensive
The group employs approximately 8,500 people in Germany. Together with the chemical, aluminum, paper and cement industries, the steel industry is one of the most energy-intensive sectors of all. The industry also faces high costs for raw materials and pollution rights.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
