Germany is planning to make around €2 billion available to help fund a green steel plant that Thyssenkrupp aims to build at its base in Duisburg, following weeks of criticism over ‘lacklustre backing’.
According to a report by Reuters, the €2 billion investment, unveiled by Germany's Economy Ministry on Monday, include €700 million of funds pledged by the German state of North Rhine-Westphalia, where Thyssenkrupp's headquarters is located.
''One thing is clear: we also need steel production in Germany and Europe in the future."
German ministry spokesperson
"To this end, we are in close contact with the European Commission. Because one thing is clear: we also need steel production in Germany and Europe in the future," a ministry spokesperson said in an emailed statement to Reuters.
Economy minister Robert Habeck travelled earlier this week to Essen and Duisburg to hold talks with Thyssenkrupp's management and labour representatives after workers condemned the government’s lack of investment.
While welcoming the public expression of support by Berlin, Thyssenkrupp chief executive Miguel Lopez emphasized that the EU Commission still needs to approve the planned aid package promptly.
"We must not lose any time in this process," he said.
Thyssenkrupp plans to commission a DRI plant to produce 2.5Mt/yr of low-carbon steel, with a production start scheduled for 2026.
Source: Reuters