Shock for Bremen: ArcelorMittal stops switching to green steel!

Shock for Bremen: ArcelorMittal stops switching to green steel!

What's going on in the steel industry? ArcelorMittal's recent decision to initially reject the switch to climate-friendly steel production at its plants in Bremen and Eisenhüttenstadt is causing massive waves. The decision was met with sharp criticism from all sides: state and federal politicians, IG Metall, the works council and the BUND are outraged and are demanding clear steps to improve the situation. Loud butenunbinnen.de The Bremen steelworks is one of the largest employers in the region with around 3,300 employees and is responsible for around 50 percent of the CO2 emissions in Bremen.

However, the circumstances did not develop as desired. ArcelorMittal attributes the cancellation of the billion-dollar project to switch to “green” hydrogen to a lack of economic viability and the high costs of hydrogen. US tariffs and competition with cheap steel from third countries are also putting a strain on business. The subsidies totaling around 850 million euros that the federal government and the state of Bremen had promised could now be lost

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A big blow for Bremen

The mayor of Bremen, Andreas Bovenschulte, speaks of a “severe blow for Bremen as a business location”. IG Metall makes a similar statement and emphasizes that the company's credibility has been noticeably shaken. There is great uncertainty, especially among the employees; around 58 percent fear that the switch to green steel will fail. Work meetings have instead been canceled and a rally is being organized to channel disappointment.

Particularly explosive: The Bremen steelworks produces 3.5 million tons of flat steel annually and is therefore responsible for around 5 million tons of CO2 emissions per year. These emissions make up a significant portion of German industrial emissions, which are considered the country's largest CO2 emitters. Loud Federal Environment Agency The steel industry in Germany reports 19.2 million tons of CO2, which corresponds to 6.6 percent of total emissions.

Reactions and other effects

The political reactions to ArcelorMittal's decision are varied. While the mayor advocates a new strategy, the CDU and FDP see the Bremen government as having a duty and criticize it sharply. The BUND emphasizes that the country's climate goals cannot be achieved without a decarbonized steel plant and calls for a quick rethink. The Federal Ministry of Economics also expresses a lack of understanding and appeals to ArcelorMittal to seek dialogue with the employees.

In summary, the steel industry continues to be on the brink. The project to switch to environmentally friendly technologies is now up in the air, while other manufacturers such as Thyssenkrupp Steel continue to plan a direct reduction plant in Duisburg. What happens next with ArcelorMittal remains to be seen. The challenges are great – both for the company and for the employees who hope for change.