thyssenkrupp has reached an agreement with the IG Metall union over the restructuring of its steel production division.
Germany’s leading steelmaker, thyssenkrupp, has reached an agreement with the IG Metall union over the restructuring of its steel production division.
The “Steel Realignment” agreement intends for a gradual reduction in production capacity to reach a target delivery level of between 8.7 and 9 million tons per year.
The agreement is currently being finalised and is expected to be completed at the end of September.
This restructuring will shutdown the blast furnace 9 at the beginning of the next fiscal year, as well as remove the blast furnace 8 from the network.
The plan also includes the closure of hot rolling mill 3 in Bochum and the early shutdown of the electric steel production plant on Castroper Strasse by the end of the 2027/28 fiscal year.
Both parties remain firmly committed to avoiding compulsory redundancies. However, the project will result in the loss of around 1,600 jobs by the end of fiscal year 2028/29.
In addition, internal efficiency strategies will affect nearly 3,700 employees.
thyssenkrupp announced the agreement as “essential” for the health of its steel division.
Marie Jaroni, Head of Sales and Transformation at thyssenkrupp Steel, stated: "Following intensive negotiations, the agreement reached together with employee representatives on a restructuring collective agreement is an important milestone for the future viability of thyssenkrupp Steel.”
“We are scaling back excess capacities, improving efficiency, and thus achieving a competitive cost level. This is another urgently needed step into the future of thyssenkrupp Steel.”
