Thyssenkrupp secures an 800 million euro manufacturing plant
In a significant move for the steel industry, Thyssenkrupp Steel has officially commissioned a new steel mill technology worth around 800 million euros in Duisburg, Germany. The investment, one of the largest in the company's history, marks a significant modernization and optimization of core production facilities [1].
The new mill, comprising a continuous casting machine and a hot rolling mill, is equipped with state-of-the-art upgrades such as a new continuous casting line 4, a modernized hot strip mill 4 with two new walking beam furnaces, and a fully automated slab logistics system [1]. These improvements aim to create one of the most modern steel production networks in Europe [1].
The focus of the investment is on producing stronger and thinner premium steels, specifically designed to meet the demanding requirements of electric mobility (e-mobility) and the energy transition [1]. The benefits of these improvements include greater efficiency, higher quality, increased flexibility, and more secure supply chains for customers [1].
Tekin Nasikkol, the chairman of the works council, stated that the investment signals they are creating the future with modern technology, qualified employees, and high-quality products [1]. The new technology replaces older 20-year-old casting rolling lines, helping Thyssenkrupp better meet future customer expectations and material demands [1].
The produced steels could be used for e-mobility and the energy transition, strengthening industrial value creation in areas such as vehicle construction and energy supply [1]. The modernization significantly enhances production capabilities while increasing efficiency and quality in line with the needs of the e-mobility and energy sectors.
Despite the planned job cuts, the works council believes that investments are crucial for securing jobs in the future. Steel CEO Dennis Grimm stated that this investment, despite a challenging economic environment, is a strong signal for steel and the location of Duisburg [1]. The works council of the steel division sees the investment as a commitment to the largest steel location in Europe, Duisburg [1].
NRW Minister of Economics Mona Neubaur emphasized that the investment demonstrates entrepreneurial responsibility for the location [1]. The construction of the new mill took two years, and the works council's view on the investment as a commitment to the location was agreed upon in the collective agreement in spring 2020 [1]. The total number of jobs in the Thyssenkrupp steel division is currently 26,000 [1].
The investment is estimated to lead to quality improvements and better utilization of upstream steel production. The new mill, owned by Thyssenkrupp Steel, is expected to increase quality, efficiency, and flexibility in industrial value creation [1]. The investment today is expected to ensure secure jobs tomorrow.
[1] Source: Thyssenkrupp Steel press release, 2021.
- The investment in the new steel mill technology by Thyssenkrupp Steel, amounting to 800 million euros, is a significant step in the finance sector, as it is one of the largest in the company's history and marks advances in the manufacturing industry.
- The focus of this investment is on producing premium steels for the energy and e-mobility sectors, aiming to create a modern steel production network in Europe that boosts industrial value creation.
- The benefits of this investment extend beyond Germany, as it increases efficiency, quality, and flexibility in the production of these critical materials, serving industries such as vehicle construction, energy supply, and the broader business sector.
