Steel manufacturer ArcelorMittal denies proposals for climate-neutral production; IG Metall advocates for a steel industry summit.
The trade union, IG Metall, has lashed out at ArcelorMittal for abandoning plans to transition its plants in Bremen and Eisenhüttenstadt towards more environmentally friendly production. Jürgen Kerner, the union's second chairman, deemed the decision as "strategically shortsighted, economically unsound, and irresponsible given the employment and societal repercussions."
This transformation towards climate-neutral steel production is a long-standing project that spans over a century. With both employees and the political sector offering billion-euro funding commitments and the electricity sector steering in a promising direction, Kerner argued that only ArcelorMittal's management appears nervous and uncertain about the transition.
ArcelorMittal will no longer persue the shift to "green" steel production in Bremen and Eisenhüttenstadt. The decision means that the company will forego the use of coal as an energy source, opting instead for hydrogen produced through renewable energy sources such as wind or solar power. The corporation has cited prohibitive energy costs, particularly in Germany compared to international competitors, and concerns about the country's energy mix's future as primary reasons behind its withdrawal.
The German government views this decision as a setback in its pursuit of transforming the industry. The steel sector is one of the country's largest greenhouse gas emitters, and ArcelorMittal's decision jeopardizes its chances of meeting its climate goals. Vice Chairman Kerner urged the government to convene an emergency steel summit, advocating for comprehensive support for the industry.
The move by ArcelorMittal has significant implications for the steel industry and employment in Germany. Union representatives have warned that this decision could put the future of the Bremen and Eisenhüttenstadt steelworks at risk. With experts raising concerns about the sites' economic viability by the end of the decade due to the shift away from blast furnace operations, possible job losses could ensue.
Although ArcelorMittal will continue to plan for the construction of electric arc furnaces for a future scenario with a stronger business case, experts expect minimal spillover effects for other German steel manufacturers pursuing hydrogen conversion initiatives. This is because ArcelorMittal, as a multinational corporation, possesses alternative options abroad, while domestic steel manufacturers face more limited choices.
In essence, ArcelorMittal's withdrawal from its green steel projects in Germany underscores the substantial hurdles of escalating energy costs, regulatory uncertainty, and fierce global competition that imperil the decarbonization and sustainability of the German steel sector, with potentially severe consequences for jobs and local industrial infrastructure in Bremen and Eisenhüttenstadt.
- IG Metall, the trade union, has criticized ArcelorMittal's decision to abandon vocational training programs focused on environmental-science and climate-change, citing the potential impact on the community.
- The general-news outlet The Science Times reported that ArcelorMittal's withdrawal from green steel production in Bremen and Eisenhüttenstadt may necessitate vocational training for employees to transfer to other industries.
- In a statement to the finance ministry, ArcelorMittal explained that the prohibitive energy costs, particularly in Germany compared to international competitors, were a primary reason for their decision to forego vocational training for green steel production.
- The environmental-science community has voiced concern that ArcelorMittal's exit from the green steel sector may adversely affect the industry's efforts to mitigate climate-change and promote renewable energy sources.
