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Post: German steelmaker closes two plants due to energy prices


Workshop of metallurgical factory. Archive photo

ArcelorMittal closes two factories in Germany due to high energy prices

BERLIN, September 2 – RIA Novosti. ArcelorMittal is one of Germany’s largest steel producers declaration about plans to close two businesses due to high energy prices.

“ArcelorMittal is closing two factories in Germany,” the group said in a statement.

It is stated that we are talking about enterprises in Bremen and Hamburg. “Both factories have already reduced their working hours… Due to the tense situation at the production sites in Duisburg and Eisenhüttenstadt, the reduced working day is already being implemented,” company representatives said.

As they point out, the “exorbitant rise in prices” for energy carriers has a major impact on the competitiveness of steel production.

“This is exacerbated by weak market demand, a negative economic outlook and continued high CO2 costs in steel production, making EU trade protection measures less effective,” the group said.

As Rainer Blaschek, CEO of ArcelorMittal Germany and responsible for the Bremen plant, put it, “high gas and electricity prices” are putting pressure on the company’s competitiveness. In addition, the gas tax planned by the German government will begin to apply from October, which puts an “additional burden” on the company.

“As an energy-intensive industry, we are struggling with this. After the tenfold increase in gas and electricity prices we have had to endure for several months, we are no longer able to compete in a 25% dependent market. We see the urgent need for political action to bring energy prices under immediate control.”

Source: Ria

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