Thyssenkrupp’s project to produce green steel is on the hot seat, according to a media report. One of the four control scenarios involves halting construction of the direct reduction plant needed for steel production with hydrogen, the Handelsblatt newspaper reported on Sunday, citing unidentified sources within the company. the company. This would likely force Thyssenkrupp’s steel division to repay prior state subsidies of around half a billion euros.
The government, concerned about the division’s repayment capacity, has started discussions with the parent company listed on the MDax, we added, citing government sources.
In addition to possibly stopping the project, the group would study three other options. The company could then move on to other types of ovens. Questioned by “Handelsblatt”, a spokesperson for Thyssenkrupp currently assumes that the direct reduction installation will be carried out under known conditions. The group wanted to stick to its transformation.
The management board has in the meantime informed the supervisory board of an expected increase in costs. A spokesperson told the Bloomberg news agency that any additional costs linked to the construction of the factory would have no impact on the subsidies promised by the federal government and the states.
Thyssenkrupp Steel is the largest steel producer in Germany. It employs 27,000 people, including 13,000 in Duisburg, according to previous figures. The division has long suffered from economic slowdown and cheap imports. The group is therefore currently looking for a solution for this sector. Thyssenkrupp recently brought in an investor for this division, notably Czech billionaire Daniel Kretinsky.
At the end of August, the conflict over the future of the division heated up. Three steel directors and four supervisory board members resigned, including chief supervisor Sigmar Gabriel and steel director Bernhard Osburg. For Gabriel, the responsibility for these resignations lies above all with the boss of Thyssenkrupp, Miguel López. He publicly launched an “unprecedented campaign” against the director of Stahl. This is a “serious breach of trust”. “Apparently, the objective was to push the board to resign.”
Mr. López publicly accused Stahl’s board of directors of “playing havoc” with its reorganization plans in early August. López had demanded that the Stahl board finally present a viable long-term business plan for the reorientation of the steel division./ngu/zb
