Steel industry in danger: Groebler warns of massive job losses!

Steel industry in danger: Groebler warns of massive job losses!

What drives the steel industry in Germany? This question has been at the center of discussions in the Chancellery since today's “Steel Summit”. Gunnar Groebler, President of the Steel Association, expressed concern about the impending risk of long-term loss of industrial jobs in Germany. The steel industry, which is already under great pressure, is particularly confronted with industrialized regions where uncertainty and fear of the future prevail. Groebler emphasized the importance of securing the country's industrial base in order to maintain social peace. Around 5.5 million jobs, directly or indirectly, depend on steel-intensive value chains, which underlines the urgency of his concern.[SAT.1 regional]

The steel summit, which lasted one and a half hours, was convened by Chancellor Friedrich Merz (CDU) and brought together representatives from industry, trade unions and prime ministers of the affected federal states. Amid a challenging economic environment where high costs and international competition weigh heavily, the steel industry is struggling with both falling domestic demand and rising energy costs. Crude steel production in Germany fell by almost 12 percent in the first half of 2025, which corresponds to the lowest production since the 2009 financial crisis.[daily news]

Challenges and future prospects

German and European steelmakers face uncomfortable competition from Asian rivals, which produce nearly three-quarters of global crude steel. China in particular is in the lead here, followed by India. The European Union comes second in global production with 14 percent, but the German steel sector remains the leader within the EU.[daily news]

Industry representatives are therefore calling for more robust trade measures against price dumping and competitive energy prices to ensure the survival of companies. In particular, the so-called “energy costs” in Germany are viewed as a competitive disadvantage. Rumor has it that the government is planning to introduce a state-subsidized industrial electricity price for energy-intensive companies from 2026, which could bring the hoped-for relief. Nevertheless, the steel industry's sales fell by 5.3 billion euros in 2024, which further exacerbates the crisis situation. IG Metall warns clearly that without competitive energy prices there is a risk of massive job cuts in the industry.[daily news]

Steel industry in transition

The developments of the last few years show that the German steel industry is not only currently under pressure, but also faces major challenges for the future. Between 1970 and 2000, many factories - especially in the Ruhr area - closed due to oversupply and falling prices, leading to massive job losses. The industry is now aiming for a sustainable transformation to counteract the high emissions, which are responsible for around a third of total industrial emissions in Germany. Innovative processes, including the discussion about hydrogen as a raw material, should help to future-proof the industry.[Statista]

In a market where six of the ten largest steel companies are based in China, the question remains how the German steel industry can improve its global position. Thyssenkrupp, for example, must immediately reduce capacity and plans to cut thousands of jobs by 2030, while at the same time focusing on sustainable steel in order to create international competitive conditions on a level playing field. A troubled path, but in today's world it is clear: There is something to be done and the industry is required to find creative solutions in order not only to remain competitive, but also to meet ecological challenges.[Statista]