Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Nordrhein-westfälischen (NRW) minister Andreas Pinkwart once again pushed back on demands made by the opposition party SDP and metalworkers’ trade union IG Metall for state investment in Thyssenkrupp Steel Europe.

 

In a parliamentary session on Nov 27, Pinkwart noted that the steelmaker’s challenges “will not be easy to solve with state participation” and that a merger with Salzgitter would be a “serious option”.

 

Pinkwart added that the “only feasible way” for short term state involvement would be for the company to secure funds from the economic stabilization fund – though Thyssenkrupp has yet to apply.

 

Public divisions regarding a potential merger between Liberty Steel and Thyssenkrupp continues, with the local steelworkers’ unions IG Metall voicing their disapproval of a tie-up with Liberty as the best partner and course of action.

 

Referencing Liberty’s potential involvement, Tekin Nasikkol, chairman of the steelworks council highlighted the union’s opposition, noting that continuing to operate in the region and developing locations was much more important for the union than “raising the money for the purchase.”

 

Thyssenkrupp Steel Europe has the capacity to produce up to 12mn mt of crude steel per year from its Duisburg facility, which is capable of manufacturing hot strip, precision strip, heavy plate, coated, organic coated, electrical, packaging, and composite steels.

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