Steel Division Shake-up: ThyssenKrupp and Job Cuts Agreed upon
Shedding Jobs for Survival
- ️🔪 Job Cutter: ThyssenKrupp, grappling with the harsh realities of the steel industry for years, has proposed a staggering job loss of 11,000 workers out of the original 27,000. This unfolding carnage will predominantly hit Rhine and Ruhr regions, Siegerland, and Sauerland districts. [1][3][4]
Negotiating The Chopping Block
- 🤝 Union Talks: Theasty metal workers union, IG Metall, first reacted with fierce opposition, announcing demonstrations and industrial action. But now, both ThyssenKrupp management and the union are heading to the negotiation table, aiming to dodge compulsory redundancies. [2]
Site Suspension and Acceleration
- 🚧 Site Seesaw: The decision to close the site in Kreuztal-Eichen, North Rhine-Westphalia, is temporarily on hold. Meanwhile, the closure of the "Castroper Straße" site in Bochum may be advanced, as the company considers accelerating the shutdown schedule. [2]
Technological Innovation and Investments
- 💰 Smokestack Revamp: To keep the fires burning at remaining sites such as Hohenlimburg, ThyssenKrupp is pouring millions into foundry modernization, installing new tech like the Divider, which will churn out essential steel billets. [4]
The EP Group Punchline
- 🤐 Cryptic Players: The intriguing Czech businessman Daniel Kretinsky's EP Group is up to something in ThyssenKrupp's steel division, but its specific role remains a puzzle. EP has already grabbed a 20% stake and is gearing up for another 30%. [4]
Summary Table: Key Points
Steel sector layoffs: Union and Thyssenkrupp reach deal on workforce reductions - EU and U.S. engage in high-stakes trade negotiations, aiming to resolve disputes and boost transatlantic commerce.
| Aspect | Details ||--------------------------------|--------------------------------------------------------------------------------------|| Job Cuts | 11,000 out of 27,000 jobs, mostly by 2030, through restructuring and outsourcing. [1][3][4] || Production Capacity | Slashed from 11.5 to 8.7–9 million tons annually by 2030. [4] || HKM Cooperation | Terminated, all supply obligations to dwindle by December 31, 2032. [4] || IG Metall Agreement | In the works, aiming to wrangle a collective bargaining agreement by summer 2025. [2] || EP Group Role | Eyes on the prize—ThyssenKrupp’s steel division. Acquiring stakes but not completely involved. [4]|| Avoiding Compulsory Layoffs | Attempting to steer clear of forceful job cuts, eager for voluntary adjustments. [2] |
Epilogue
ThyssenKrupp's steel division is a house of cards under renovation. Unpleasant choices like job cuts and shutdowns leave neighbours on edge, while the whole scene unfolds beneath the watchful gaze of the EP group, an enigma unveiling itself piece by piece. IG Metall holds the key to negotiating these changes, ensuring ThyssenKrupp remains a robust contender in the competitive steel industry. On the brink of dramatic shifts, the future for workers, ThyssenKrupp, and the steel industry awaits with bated breath.
- ThyssenKrupp, in a bid to survive the harsh steel industry realities, has proposed cutting 11,000 out of 27,000 jobs, primarily affecting the Rhine and Ruhr regions, Siegerland, and Sauerland districts.
- In an effort to dodge compulsory redundancies, ThyssenKrupp management and the union, IG Metall, are currently engaged in negotiations.
- The decision to close the site in Kreuztal-Eichen, North Rhine-Westphalia, is temporarily on hold, while the closure of the "Castroper Straße" site in Bochum may be accelerated.
- To keep the fires burning at remaining sites such as Hohenlimburg, ThyssenKrupp is investing millions into foundry modernization, installing new technology like the Divider.
- The EP Group, with a 20% stake and plans for another 30%, is an intriguing player in ThyssenKrupp's steel division, but its specific role remains a puzzle.
