Bremen am Stahl-Scheidweg: Economic expert warns of losses!

Bremen am Stahl-Scheidweg: Economic expert warns of losses!

In the Bremen steel industry, alarming happens. The Arcelormittal work is not adorned with high production numbers, but the unprofessability is a huge mood killer. Despite its productivity, the Bremen steel mill is located in the loss zone. Economists Rudolf Hickel warns that it is high time to invest in the transformation of the location. "Otherwise, we risk falling behind as a steel location," Hickel, who once headed the institute work and business at Bremen University. The current market constitution is also anything but rosy: falling demand, especially from the automotive industry, and massive pressure through dumping prices from China are increasing the industry. The import pressure is considered a serious problem, since China mostly exports fossil steel.

Although ArcelorMittal has announced that it does not invest in the Bremen transformation until further notice, the need to switch to CO2-reduced production process remains. The EU is also planning a border compensation system that is intended to regulate the climate impact on imported steel, as https://www.tagesschau.de/inland/REGERE/REMIONAL/RB-WENTSECHEXPERTE-FEIT-BREME-ALS-SAUS-ALS-ALS-AM-SCHADE-100.html).

ArcelorMittal describes itself as one of the largest CO2 emitters worldwide and has officially committed itself to producing steel with net zero emissions by 2050. In order to achieve this goal, the transformation and decarbonization are promoted at several locations in Germany, including Bremen. Specific projects should not only reduce ecological footprint, but also support the company and the EU's climate goals, know [arcelormittal. Competitive and predictable energy prices are essential.

But the challenge is great: the steel industry is faced with a massive need for investment to reduce CO2 emissions, while at the same time high energy prices and lack of access to affordable, renewable energy burden the Situation. Customs and tariffs also don't make it easier for companies to gain a foothold in the international market. Many investments for decarbonization have been postponed in recent years, which only increases the uncertainty in the industry. According to an article in the Handelsblatt, many companies in the steel industry are currently in a dilemma.

an outlook on the future

How is the Bremen steel mill continues? Hickel and other experts warn that a closure of the work, although currently not an issue, could still be in the room if there is no CO2-reduced production. Speculators are also speculating about the possible reduction in production to steel products or the planned construction of an electric laying stove. In this context, the support of politics is required to create the general conditions for successful transformation.

"The innovation and securing jobs are crucial so that Bremen can permanently exist as a steel location," said Hickel. With appropriate support, Bremen could be at the forefront of Green Steel. Until then, the situation remains tense and requires a good hand of everyone involved for the upcoming challenges.