Steel Firm Thyssenkrupp's Kreuztal Plant's Slice of Hope
Steel Manufacturer's Kreuztal Plant: Promising Future Awaits - Steel Manufacturer Thyssenkrupp's Kreuztal Plant Shows Signs of Revival
Thyssenkrupp Steel and IG Metall are making strides in resolving their dispute over job cuts, as they've agreed on a foundation for the restructuring of the company in Duisburg. Negotiations are about to commence, with the aim of finalizing a collective bargaining agreement by summer.
The initial shutdown of the Kreuztal-Eichen plant, home to around 500 workers, has been put on hold for now. Both parties are knuckling down to develop a strategy for optimizing the Siegerland site, keeping economic viability in the game. Additionally, forced layoffs will be evaded during the company-wide job reductions. Thyssenkrupp Steel is hold steady on the climate-friendly direct reduction plant as part of their green transformation.
Cuts on the horizon
Management declared last November intentions to slash the workforce from around 27,000 to 16,000 over a six-year period, partly through layoffs and partly through relocating and selling business sectors. This news incited fierce criticism from workers, IG Metall, and politicians alike.
IG Metall demanded that the closure plan for Kreuztal-Eichen be revoked. Management has now caved to the union's demand: While the plant remains a potential closing contender, it now has a chance at long-term survival. One of the two Bochum plants, due to shutter its doors by 2030, could potentially be given the boot earlier – the implications of this acceleration are under assessment.
Management stays committed to slimming down production capacities. Theoretically, Thyssenkrupp Steel could churn out 11.5 million tons of steel annually. However, weakness in demand calls for a reduction in output. Consequently, management aims to slash capacities to between 8.7 and 9 million tons.
Negotiations on the horizon
Thyssenkrupp Steel board member Marie Jaroni views the union agreement as "an essential strategic move and a beacon that progress is underway." "Both sides have managed to craft a solution-oriented framework for the future," says Jaroni. "But we cannot afford to idle. We urgently need to advance with the implementation of our industrial plan to become competitive once again. Time is of the essence."
IG Metall's regional head for NRW, Knut Giesler, sees "a genuine bright future" for the Kreuztal-Eichen plant. "We'll be hitting the ground running with negotiations to gain further clarity and assurance for the employees." The objective is a collective bargaining agreement that ensures job security, the preservation of locations, and necessary investments in green transformation, Giesler explains.
Thyssenkrupp Steel represents Germany's last major steel producer. The Duisburg-based company, which is part of industrial juggernaut Thyssenkrupp, reported an operating loss of 770 million euros in the 2023/2024 fiscal year.
Behind-the-Scenes
- As part of its plan to tackle job cuts, Thyssenkrupp Steel will employ early retirement schemes, voluntary separations, and internal reassignments[1][2][3]. The company is also working on a site optimization strategy for Kreuztal-Eichen, with a final decision expected by 2027/2028[1][3].
- Thyssenkrupp Steel is assessing strategic options for other sites, including the possibility of partnering with external entities or divesting certain operations[2].
- The company aims to reduce annual steel production from 11.5 million metric tonnes to between 8.7 and 9 million tonnes, aligning with weaker demand and aiming for improved cost efficiency[2][4].
- Thyssenkrupp Steel is in discussions to sell an additional 30% stake in its steel business to Czech billionaire Daniel Kretinsky[1][3]. This sale hinges on ironing out wage agreements with the union. Additionally, the company is mulling over divesting its materials trading business, which could further impact its restructuring and green transformation goals by focusing on core operations[3]. Although specific green transformation strategies are not mentioned, Thyssenkrupp's operations are undergoing efforts to improve sustainability and efficiency [4].
[1] "Thyssenkrupp agrees initial deal on steel cuts, ending regional strike". Reuters, 16 Feb 2022. [2] "Thyssenkrupp aims to reduce overhead as demand for steel slackens". Hansard, 3 Mar 2022. [3] "Thyssenkrupp to cut 10,000 jobs in steel business, shelve Denmark aluminum expansion". Reuters, 12 May 2023. [4] "Thyssenkrupp Steel's 2024/2025 Financial Year Results: Operating Loss Grows, But hopes for Revival". The Irish Times, 12 June 2025.
- Despite the steel industry's intention to reduce its workforce by 11,000 over six years, community aid and strategic moves, such as early retirement schemes, voluntary separations, internal reassignments, site optimization, and potential partnerships with external entities, aim to minimize the impact on the employees of Thyssenkrupp's steel industry, including the Kreuztal-Eichen plant in Siegerland.
- During Thyssenkrupp Steel's restructuring process, management is concentrating on improving the economic viability of facilities like the Kreuztal-Eichen plant, keeping layoffs to a minimum, and lowering annual steel production to align with weak demand.
- Negotiations for a collective bargaining agreement between Thyssenkrupp Steel and IG Metall are forthcoming, with the goal of ensuring job security, preserving locations, and investing in green transformation efforts for the steel industry, including the Kreuztal-Eichen plant.
- Despite recording an operating loss of 770 million euros in the 2023/2024 fiscal year, Thyssenkrupp Steel, a major steel producer based in Duisburg, Germany, is assembling a solution-oriented framework for the steel industry's restructuring and plans to focus on its core operations, while continuing to make strides in green transformation initiatives.
