Germany Seeks $2.1 Billion in Investment for Thyssenkrupp's Eco-Friendly Steel Facility

Germany: Germany Economy Ministry announced on Monday that it intends to provide nearly 2 billion euros ($2.1 billion) to support the development of Thyssenkrupp's green Steel plant in Duisburg, a critical restructuring project for the struggling conglomerate. 700 million euros from the German state of North Rhine-Westphalia, where Thyssenkrupp's headquarters are located, is part of the proposed funding package. This move represents a significant commitment to preserving one of Germany's most prominent industrial names. Since decarbonizing Steelmaking, one of the most polluting industrial production procedures, necessitates external financing, Thyssenkrupp is reliant on such funds.

A spokesperson for the ministry stated, we are in close contact with the European Commission on this matter. It is evident that Steel production must continue in Germany and Europe in the future. After weeks of backlash from workers who believe Berlin's support is inadequate, Economy Minister Meeting with Thyssenkrupp's management and labour representatives, Robert Habeck journeyed to Essen and Duisburg on Monday. Thyssenkrupp CEO Miguel Lopez welcomed Berlin's public expression of support but highlighted that the EU Commission must still approve the proposed aid package and that the company requires rapid clarity.

He emphasized; Time is of the essence in this process. Thyssenkrupp intends to build a direct reduction iron (DRI) plant as part of its Hydrogen-based climate strategy for Steel production, known as tkH2Steel, to produce 2.5 million tonnes of Steel annually while being environmentally conscious. The production is set to begin in 2026. As with its peers, the company must restructure its entire manufacturing process and make it Carbon-neutral and predicts that the expenses for the plant and necessary infrastructure will surpass €2 billion.

Thyssenkrupp is a conglomerate composed of independent industrial and technological firms, employing almost 96,000 professionals worldwide. In fiscal year 2021/2022, it achieved €41 billion in sales across 48 countries, segmented into six divisions: Materials Services, Industrial Components, Automotive Technology, Steel Europe, Marine Systems, and Multi Tracks. The company leverages its significant technological expertise to develop sustainable and cost-effective solutions for future challenges. Roughly 3,600 employees work in R&D centres at 75 locations worldwide, focusing on climate protection, energy transition, digital transformation, and future mobility. Thyssenkrupp owns approximately 17,370 patents and utility models under the thyssenkrupp umbrella brand, creating long-term value by developing innovative products, technologies, and services that enhance the quality of life for future generations. To achieve this, the company has established ambitious climate protection goals and is enhancing its energy and climate efficiency.