Thyssenkrupp Steel Europe AG has reaffirmed its commitment to its green steel plant in Duisburg, Germany, despite announcing plans to reduce production capacity and cut approximately 11,000 jobs. The move comes as the company addresses rising costs and market challenges.

The hydrogen-powered direct reduction plant, currently under construction, will proceed as planned, with the company in talks with stakeholders to ensure its economic feasibility. By 2030, Thyssenkrupp Steel aims to install two advanced melters with a combined output of 2.2 million metric tonnes annually, replacing two conventional blast furnaces. The potential replacement of a third furnace with an electric arc furnace remains under consideration, dependent on future conditions.

In response to market overcapacity and competitive pressure from low-cost imports, particularly from Asia, Thyssenkrupp Steel will reduce its annual manufacturing capacity to between 8.7 and 9 million metric tonnes from the current 11.5 million metric tonnes.

The restructuring plan includes eliminating 5,000 jobs by 2030 and transferring or selling an additional 6,000 positions to external service providers. These measures aim to cut personnel costs by 10%. Discussions with supervisory bodies and employee representatives on these proposals will continue in the coming months.

Source: renewablesnow.com