Thyssenkrupp’s labour bosses have urged the German government to help fund a 2 billion euro green steel production site. In a letter to Economy Minister Robert Habeck, the group’s deputy chairman Juergen Kerner warned that a further subsidy cut could lead to the project being scrapped. The letter did not disclose the amount of state help proposed or by how much it had been reduced.
The conflict highlights the need for governments to approve subsidies quickly to avoid companies from shifting investments or stopping them altogether. Thyssenkrupp in August made the investment decision for the direct reduction iron (DRI) site at its steel base in Duisburg, provided substantial subsidy commitments by the state of North Rhine-Westphalia and Berlin were fulfilled.
Tekin Nasikkol, who heads the works council of Thyssenkrupp Steel Europe, said Berlin needed to quickly approve hundreds of millions in subsidies for the site, adding workers’ patience had run out. The letter invited Habeck to a worker gathering in Duisburg in mid-June to discuss the issue.
The Economy Ministry has said it continues to support Thyssenkrupp’s plans but cannot approve the funds without consent from the European Commission, which is still outstanding. The outcome of the dispute will be a key indicator of how much industrial heavyweights depend on aid to decarbonise their businesses.