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Bremen in a dead end: ArcelorMittal rejects green steel!
ArcelorMittal rejects climate-friendly transition in Bremen, triggering labor disputes and impact on emissions.
Bremen in a dead end: ArcelorMittal rejects green steel!
There is currently excitement in Bremen about ArcelorMittal's steel production. How Class against class reports, the company has decided to put its plans to convert its steel production in a climate-friendly manner on hold. This not only affects the environment, but also the over 8,000 jobs in Bremen that are directly linked to the workshop.
The focus of the discussion is the company's high CO2 emissions. With around 5 million tons of CO2 emitted by ArcelorMittal in Bremen in 2022, the steel industry is one of the largest emitters of greenhouse gases in Germany. This sector currently accounts for around 30% of the industrial sector's emissions. A planned switch to the production of steel using hydrogen could introduce lower-emission processes, which, however, also depend on a massive expansion of renewable energies.
The groundbreaking decision
The plans called for producing 3.5 million tons of steel in a more climate-friendly manner annually in Bremen and the partner plant in Eisenhüttenstadt, but in June 2023 ArcelorMittal rejected government funding amounting to 840 million euros. CEO Geert Van Poelvoorde justifies this decision with the uncertainty about the future availability of cheap “green” hydrogen and the high electricity prices. The transformation is considered too risky, especially with regard to company profits.
This situation raises questions: What happens next? There are calls for economic transparency and the formation of company-related action committees in order to represent the interests of employees and prevent salary cuts and job cuts. Possible support could come from IG Metall, which could play a crucial role in coordinating employee interests.
Collaboration for a more sustainable future
Despite the decision in Bremen, there is hope: ArcelorMittal has signed a declaration of intent to use CO2-reduced steel with the company Wiederholt. According to ArcelorMittal CO2 emissions in Europe are to be reduced by 35 percent by 2030, with the global goal being net zero by 2050. Repeat plans to save up to 65 percent CO2 compared to traditional production by sourcing hot-rolled steel made from at least 75 percent recycled scrap.
There is an initial ray of hope here: some end users have already expressed interest in reduced-emission steel. Jochen Grünewald from ArcelorMittal highlights that customized product development is carried out for Wiederholt, which underlines the commitment to more environmentally friendly production.
A key to the future
Beyond all these developments, the question of the future of the steel industry is becoming increasingly pressing. Studies show that a successful transformation in the steel industry can be beneficial not only ecologically but also economically. It could strengthen the value network and contribute to the technological leadership of German companies. However, it is crucial that all actors are prepared to pull together and act in a future-oriented manner.
The current debate about steel production in Bremen shows once again how important it is to both secure jobs and promote ecological conversion. Will it be possible to find the balance between economic profitability and environmental protection? The coming months will be crucial and it remains to be seen how those responsible will respond to the challenges.