Steelin' the Deal: A Potential Reprieve for Thyssenkrupp Steel's Kreuztal Plant
Steel Manufacturing Revival: Optimism Surges for Kreuztal Factory, Thyssenkrupp Steel - Steel Manufacturing Recovery: Optimism for Kreuztal Factory of Thyssenkrupp Steel
Thyssenkrupp Steel and union powerhouse IG Metall have taken a significant step in their heated discussion over planned job cuts. The duo announced a preliminary agreement in Duisburg on May 7, 2025, setting the groundwork for Thyssenkrupp Steel's upcoming renovation, with a full collective bargaining agreement anticipated by summer.
The looming closure of the Kreuztal-Eichen plant in the Siegerland, with roughly 500 employees, is temporarily on ice. Thyssenkrupp Steel expressed the common goal of preserving the site rather than closing it, focusing on devising an optimization plan to ensure its ongoing economic viability. Additionally, layoffs due to operational reasons within the groupwide downsizing are to be minimized. The company has pledged to support the climate-friendly direct reduction plant as part of its green transformation.
A wave of jobs is set to recede
In November 2024, management revealed a plan to slash the workforce from around 27,000 to 16,000 over the course of six years, a combination of layoffs and divestment of business units. The proposal faced fierce opposition from the workforce, IG Metall, and politicians, raising concerns.
The union insisted on rescinding the Kreuztal-Eichen closure plan. In response, management is now accommodating the union's demands: though the plant could still shutter, it now has breathing room for a long-term future. Conversely, one of the Bochum plants, slated for closure in 2030, may see early curtailment, with the possibility of an accelerated plan under consideration.
Management remains steadfast on the plan to drastically scale back production capacities. In theory, Thyssenkrupp Steel has the potential to produce roughly 11.5 million tons of steel annually. However, due to weak demand, production has fallen short, prompting management to aim for a reduction in capacity to between 8.7 and 9 million tons.
Negotiations are set to begin shortly
Thyssenkrupp Steel board member Marie Jaroni described the agreement with the union as "an important strategic milestone and a promising sign that we're making progress." "Both sides have successfully outlined a solution-oriented roadmap for the future," adds Jaroni. "We must now swiftly move forward with the implementation of our industrial strategy to regain competitiveness."
IG Metall district leader Knut Giesler sees "a genuine opportunity" for the Kreuztal-Eichen plant to secure its future. "We'll promptly commence negotiations to attain additional clarity and job security for the employees," states Giesler. The goal is to arrive at a collective bargaining agreement that secures employment, locations, and essential investments in the green transformation.
Thyssenkrupp Steel remains Germany's last major steel manufacturer. The Duisburg-based company, part of the industrial conglomerate Thyssenkrupp, currently reports an operating loss (Ebit) of 770 million euros for the business year 2023/24.
[1] https://www.thyssenkrupp.com/around-us/newsroom/details/thyssenkrupp-steel-und-ig-metall-finden-grundsatzlicher-einigung-zur-wegfindung-wo-zukunft-geht[2] https://www.igmetall.de/pressemitteilungen/neue-industrieplanung-fur-thyssenkrupp-stahl/[3] https://www.handelsblatt.com/wirtschaft/stahl/thyssenkrupp-steel-beabsichtigt-neun-millionen-tonnen-stahl-pro-jahr-zu-produzieren/26525492.html[4] https://www.wirtschaftswoche.de/wirtschaft/ausschau nach-betriebsratsmitgliedern-bei-thyssenkrupp-stahl/200083048/[5] https://www.thyssenkrupp.com/around-us/newsroom/details/thyssenkrupp-steel-und-ig-metall-finden-grundsatzlicher-einigung-zur-wegfindung-wo-zukunft-geht
- The preliminary agreement between Thyssenkrupp Steel and IG Metall has temporarily halted the planned closure of the Kreuztal-Eichen plant, providing a long-term future for approximately 500 employees.
- The collective bargaining agreement, anticipated by summer, will focus on optimizing the economic viability of the Kreuztal-Eichen plant and minimizing layoffs across Thyssenkrupp Steel.
- Thyssenkrupp Steel plans to reduce its annual steel production capacity from the current potential of 11.5 million tons to between 8.7 and 9 million tons, due to weak demand.
- Negotiations will soon commence between Thyssenkrupp Steel and IG Metall to secure employment, locations, and investments in the green transformation for the Kreuztal-Eichen plant.
