ArcelorMittal: Works council supports halt to CO₂-reduced steel production

Following fierce criticism of the steel company ArcelorMittal following its decision to halt environmentally friendly steel production, the works council at the plant in Brandenburg expressed understanding. While the news was initially a shock, as plans for the conversion to "green steel" were already well advanced, the Eisenhüttenstadt works council chairman, Dirk Vogeler, told broadcaster RBB, CO₂-reduced steel production is currently not economically viable.

"Unfortunately, we have to realize that the economic conditions are not feasible within the timeframe of this project application," Vogeler continued. Such an investment would currently ruin the steel mill.

On Thursday, ArcelorMittal announced that it "unfortunately cannot pursue" its plans to decarbonize its two flat steel mills in Eisenhüttenstadt and Bremen. The reasons given were the market situation and the lack of economic viability of CO₂-reduced steel production. By withdrawing from the project, ArcelorMittal is foregoing €1.3 billion in previously approved funding.

Federal Minister of Economics Katherina Reiche (51) drew two conclusions from this decision. "We need lower energy prices," said the CDU politician during a visit to the US capital, Washington. The German steel industry must become competitive again. This requires negotiations with China , among other things, on "dumping of cheap steel." And: "We must acknowledge that the transformation to green steel is a long and expensive process." The laws regarding hydrogen and its use must be reviewed in Germany .

SPD Chairman Lars Klingbeil (47) has announced his commitment to preserving jobs. "We are fighting for every industrial job in Germany," said the Federal Finance Minister at the SPD Brandenburg state party conference in Cottbus. "Let's find solutions now." Klingbeil called – addressing the rich – for a kind of steel summit. "I approached the Minister of Economic Affairs with the request to bring all stakeholders to the table first," he said. "I would also like to support this as Finance Minister."

Unlike their competitor ArcelorMittal, German steel manufacturers Thyssenkrupp Steel, Salzgitter, and Stahl-Holding-Saar (SHS) intend to continue their projects for more climate-friendly production. Construction of the new plant has already begun at Germany's largest steel producer, Thyssenkrupp Steel. The company is set to receive a total of around two billion euros in funding from the federal government and the state of North Rhine-Westphalia. The plant for climate-friendly steel production is expected to replace two blast furnaces by 2030. It will initially be powered by natural gas, later by hydrogen.

A spokeswoman for Salzgitter AG said the implementation of the first phase of the conversion is "already very advanced and will continue as planned." The conversion at Germany's third-largest steel company has been underway since the end of 2023. The first plant is scheduled to go into operation in 2027. Salzgitter is investing more than two billion euros, including one billion euros from the federal and state governments. The company aims to convert entirely to green steel by 2033.

A direct reduction plant and electric arc furnaces are to be built in Saarland. The direct reduction plant will supply the Dillingen and Völklingen sites with iron pellets, which will then be used in the electric arc furnaces to produce CO₂-reduced steel with the addition of scrap. The conversion to green steel production is expected to cost a total of around €4.6 billion. The federal government and Saarland will contribute €2.6 billion of this. Commissioning is planned for 2028/29.