Thyssenkrupp to cut steel capacity, 11,000 jobs in restructuring drive

Thyssenkrupp, Germany's largest steel producer, confirmed it will reduce its 11.5 million mt steel production capacity to a shipping level of 8.7 million to 9 million mt as part of a restructuring agreement signed Dec. 1 with trade union IG Metall.

The restructuring process will be implemented immediately to raise efficiency levels and achieve more competitive cost positions as quickly as possible, the company stated in a press release on the same day.

The agreement is based on the industrial concept developed by the Steel Executive Board and presented in November 2024.

Thyssenkrupp Steel said that it continues to pursue the goal of carbon-neutral steel production in the long term with the construction of the first direct reduction plant at the Duisburg location, which is still ongoing, as well as cutting or outsourcing about 11,000 jobs.

"Since presenting our industrial concept, we have consistently solved the tasks facing us step by step and by concluding the collective restructuring agreement, we have cut the Gordian knot so we can make thyssenkrupp Steel fit for the future," said CEO Marie Jaroni. "Our goal is very clear: over the long term, we aim to occupy a leading position in the European competitive environment. We have now created the prerequisites for this."

"The agreement and signing of the collective restructuring agreement represent strong signs: together, the company and employee representatives have developed a forward-looking agreement for Steel," said Wilfried von Rath, chief human resources officer. "We have also got to be open and honest about this: there will be a lot of lay-offs and we will be making some swinging cuts. But we are doing this to become more competitive and secure as many jobs as possible for the future," he added.

Thyssenkrupp Steel Europe is up for sale with Jindal Steel International, which submitted a non-binding offer Sept. 16. Thyssenkrupp has tried unsuccessfully to sell its steel business in the past, with the steel operations struggling on low overall demand and steel oversupply, as well as high energy costs and cheap imports.

Platts, part of S&P Global Energy, assessed domestic hot-rolled coils in Northern Europe at Eur605/mt ex-works Ruhr Nov. 28, and in Southern Europe at Eur595/mt ex-works Italy, both stable day over day.