Thyssenkrupp: why steel workers are mad at Habeck – economy

Thyssenkrupp would also like such pictures, only with an even larger number: a few weeks ago, the Federal Minister of Economics presented them Robert Habeck at the Hanover Fair a grant notification to Gunnar Groebler, head of the steel manufacturer Salzgitter. On the extra large expression was 999,782,173.87 euros – the federal and state governments are paying almost one billion euros to the Lower Saxony group so that it can convert parts of its steel production to climate-friendly processes. The Essen rival Thyssenkrupp is planning something similar, albeit a little more extensive. But at Thyssenkrupp the funding decision is a long time coming. Workers’ representatives are already warning that the delay threatens the entire project.

Preventing this is one of the most urgent tasks for Miguel López. The Spaniard, who was born in Hesse, has been the head of ThyssenKrupp since the beginning of the month – and now has to deal directly with problems in one of the most important climate protection projects in local industry. So far, Thyssenkrupp’s steel division has accounted for 2.5 percent of Germany’s carbon dioxide emissions. In order to reduce greenhouse gas emissions, Pursue now one in the steelworks in the north of Duisburg so-called direct reduction plant build. It replaces one of the four blast furnaces in Europe’s largest steelworks and does not produce iron with coke and coal, but with climate-friendly hydrogen. The ambitious project costs 2.8 billion euros; the federal government should support this with 1.3 billion euros, the state of North Rhine-Westphalia would pay 700 million euros.

A total of two billion euros are to flow in subsidies. But as long as the funding decision is missing, there is agonizing uncertainty. The IG Metal is therefore organizing a demonstration in Duisburg in a week and a half, to which Habeck has also been invited. The reception would not be very friendly. “We will show that you can’t treat us like this,” threatened Tekin Nasikkol, chairman of the Thyssenkrupp steel division’s works council, in the two-page protest call.

The trade unionists warn that the representatives of the shareholders on Thyssenkrupp’s supervisory board could put the project on hold if the promise is not made or if the federal government even cuts its promised funding. But “if the order is stopped now, we’ll be at the bottom of the waiting list” for the plant manufacturers, says Nasikkol. The climate-friendly conversion of steel production could be delayed by years, and then it could be too late for the steel division and its 26,000 employees.

The government has not yet officially registered the aid in Brussels

Habeck denies any guilt: “It’s not up to the will of the federal government or the money. We’ve reserved the money, everything is ready,” said the Green politician recently. But the EU Commission’s competition watchdog would still have to approve the subsidy. A Commission spokeswoman says the agency is “in close contact” with the German government. Climate protection projects like this would be processed “with priority”.

However, only informal talks are still ongoing, and the federal government has not yet officially registered the subsidy in Brussels. The rival Salzgitter is also building a direct reduction plant; the commission gave the one billion euros in subsidies free already last October. Six months later, Habeck was able to present the funding notification at the Hanover Fair.

The fact that at Thyssenkrupp the talks with Brussels and the examination are taking longer can be attributed to two main reasons. First, the group has meanwhile changed its plans and thus its application for funding; the project turns out to be larger and more expensive than originally planned. And secondly, the sheer sum should lead to more inquiries from Brussels. After all, competitor Salzgitter is to receive only half as much aid for its smaller project. And for the Commission, the most important goal of subsidy control is to prevent distortions of competition and unfair advantages. The risk of something like this increases with the amount of funding.

The group is looking for buyers for the division

The uncertainty surrounding subsidies also makes it difficult to find partners or buyers for the steel division. The resigned Thyssenkrupp boss Martina Merz has already tried to sell the business or to bring investors on board. Saying goodbye to climate-damaging blast furnaces requires huge investments; a direct reduction plant alone is not enough. Without a partner, Thyssenkrupp could be overwhelmed.

However, parts of the management and the employee representatives reject the separation from Stahl. In any case, Merz did not make much progress in finding a buyer. The quarrels about the division were the main reason that the manager gave up. Now her successor López has to deal with it.