Germany to close two steel plants due to energy prices

BERLIN, Sep 2 – PRIME. ArcelorMittal, one of the largest steel producers in Germany, announced plans to close two of its enterprises due to high energy prices.

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

It is specified that we are talking about enterprises in Bremen and Hamburg. “Both plants already have reduced hours… Due to the tense situation at the production sites in Duisburg and Eisenhüttenstadt, a reduced working day is also already being applied,” the company representatives explained.

As they note, “exorbitant rise in prices” for energy carriers has a huge 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 added.

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As Rainer Blaschek, CEO of ArcelorMittal Germany and responsible for the Bremen plant, adds, “high gas and electricity prices” are putting pressure on the company’s competitiveness. In addition, the gas tax planned by the German government will be introduced from October, which also places an “additional burden” on the company.

“As an energy-intensive industry, we are suffering tremendously from this. After a tenfold increase in gas and electricity prices, which we had to put up with for several months, we are no longer competitive in a market that is 25% dependent on imports. We see an urgent need in political action to immediately bring energy prices under control,” Blaschek added.