German steelmaker thyssenkrupp Steel has reached an agreement in principle with industrial union IG Metall to avoid layoffs as part of its major restructuring plan, the company announced this week.
The deal follows thyssenkrupp’s strategic plan presented late last year, aimed at restoring the company’s independence and long-term competitiveness. A final collective bargaining agreement is expected by summer 2025, according to both parties.
Under the industrial plan, thyssenkrupp will reduce its steel production capacity to between 8.7 and 9 million metric tons, citing ongoing market pressures. Despite the cuts, the company will move forward with its green transformation strategy, which includes building a direct reduction plant and an electric arc furnace (EAF)-based facility in Duisburg.
Key operational changes were also outlined:
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The Eichen plant will remain open in the short term and undergo optimization, with a final decision on its future expected by the end of the 2027–28 financial year.
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The company will evaluate the possibility of accelerating the closure of the Bochum plant, which has already been slated for shutdown.
The agreement is a critical step in ensuring labor stability during a period of structural overhaul, as thyssenkrupp aligns with decarbonization goals and market realities.
VietnamSteel by Hoa Sen Group
