Thyssenkrupp Halts French Plant, Endangering 1,200 Jobs
German industrial conglomerate Thyssenkrupp announced on Thursday it will extend significant steel production cuts, placing 1,200 jobs in jeopardy across Germany and France. The company's Isbergues facility in France, which has operated at only 50% capacity since January, will be completely shut down from June to September. This follows the earlier temporary closure of its Gelsenkirchen plant in Germany. Both sites are critical producers of grain-oriented electrical steel, a material essential for manufacturing transformers and wind turbines.
Cheap Imports Squeeze European Steelmakers
The production cuts are a direct result of intense competition from low-cost steel imports flooding the European market. Thyssenkrupp stated these imports are priced "significantly below average production costs across Europe," making it unsustainable to maintain normal operations. In response, the company has formally called on the European Union to implement immediate protective measures. This situation reflects a continent-wide challenge, as other governments weigh the trade-offs of protectionism. The United Kingdom, for instance, recently moved to raise tariffs on foreign steel, a decision that supports domestic producers but is expected to "exacerbate" cost pressures for major infrastructure projects and the construction industry.
