“The prospects are not good”

Why do you have to carry out a mass layoff in Emmenbrücke?

Frank Koch: Although our ongoing restructuring program has already brought savings, the overall economic situation has unfortunately deteriorated. The prospects are not good. Industrial production in particular is suffering. 90 percent of the steel from Emmenbrücke goes to Italy, Germany and France, and a large part of it goes to the auto industry, which is in a structural crisis. Added to this are the continued high energy prices. The job cuts are painful, but unfortunately necessary. In this way, we are at least creating clear conditions for the workforce, some of whom have been on short-time work for a long time.

You mention external factors as justification. In your opinion, has management made no mistakes?

I see Swiss Steel as having the right strategic positioning. It’s not that we lose orders because the quality of our steel is poor. On the contrary, we are gaining market share. Our steel production from steel scrap is much more sustainable than that of our international competitors, who produce pig iron from iron ores in blast furnaces. We also slimmed down the organization, sold the former headquarters in Düsseldorf and divested unprofitable areas.

And yet this year the loss is likely to be even greater than last year. How secure are the remaining jobs in Emmenbrücke? Would a closure or sale be conceivable?

As a listed company, we cannot make any statements about the annual results today. But what we can say: We are committed to Switzerland as a location. It is a highly efficiently managed steelworks in which we have invested a lot in recent years. The employees here have demonstrated high levels of performance. We have received purchase offers in the past, but Emmenbrücke is not up for consideration. The factory is at the core of our strategy.

The second Swiss steelmaker Stahl Gerlafingen is also cutting jobs. In Switzerland there is a debate about the systemic relevance of the steel industry and possible government support measures. Is Swiss Steel systemically relevant for Switzerland?

System relevance is a big word. Swiss Steel is definitely relevant for Switzerland because we process around 700,000 tons of steel scrap per year. If Emmenbrücke didn’t exist, this scrap would have to be exported at great expense. We also make a contribution to the stability of the electricity grid. So we fulfill tasks that others don’t want to or can’t do.

So should the federal government give you a hand?

In Switzerland we already know government instruments such as short-time work that help us. Politicians must decide whether further measures are needed. I won’t make any demands.

The previous management accumulated high triple-digit million losses due to a failed takeover in France. You recently separated from this work. Are further sales planned?

No, we are currently well positioned in Switzerland, Germany, France and North America.

They wanted to sell the plants in Chicago and Canada, but are now keeping them. Why?

We have examined a sale and have come to the conclusion that the offers on the market do not reflect the true value. The industrial climate in North America has also improved.

Also because of the election of Donald Trump?

The new administration brings opportunities and risks that we must weigh carefully.

Would US import tariffs affect the Swiss factory?

No, we only ship very few products from Switzerland to North America, but mainly produce locally. However, trade barriers are always very complex because they usually trigger counter-reactions from other countries. In principle, we support trade that is as free as possible.

The steel sector is also suffering from Chinese overproduction. Are you affected by this?

Less than others because we don’t produce mass-produced goods, but rather special steels.

In view of the desolate situation of the Swiss Steel Group, the management and the board of directors are accused of high wages. You earned 1.8 million francs last year. Is that appropriate?

I understand the dissatisfaction, especially when there are job cuts. The Board of Directors decides on my services and the associated remuneration.