“National Steel Summit”: What future does the steel industry have in Germany?

High energy prices and global overcapacity are putting Germany's steel producers under pressure. How things can continue despite this is the topic of a “National Steel Summit” at a special location.

There is a “National Steel Summit” in Salzgitter on Monday. (Symbolic image) Photo: Hauke-Christian Dittrich/dpa

Berlin. Politicians, company representatives and trade unionists will discuss the future of the German steel industry next Monday at a “National Steel Summit”. They meet in Salzgitter, Lower Saxony, at the factory of the steel manufacturer of the same name.

They want to talk about the development of climate-neutral steel production and the political framework for competitiveness, investment and employment. Top representatives of the so-called Steel Alliance, consisting of the eleven federal states with steel locations, the steel industry association, the IG Metall union and the industry are expected.

Before the event, more than 1,000 steel workers from Lower Saxony and Saxony-Anhalt want to demonstrate for the preservation of steel jobs in Germany.

Prime Ministers Lies and Wüst take part

The Prime Ministers of the steel states Lower Saxony and North Rhine-Westphalia, Olaf Lies (SPD) and Hendrik Wüst (CDU), as well as the Second Chairman of IG Metall, Jürgen Kerner, want to take part in the summit. Federal Minister of Economics Katherina Reiche (CDU) wants to give a speech.

The Steel Alliance countries, the industry association and IG Metall also want to hand Reiche a joint position paper. In it they want to formulate their expectations of future industrial and steel policy.

It is not the first “steel peak”. A year ago, for example, Chancellor Friedrich Merz (CDU) invited prime ministers, companies and employee representatives to an exchange in the Chancellery.

IG Metall vice-president Kerner: Steel summit must be an “implementation summit”.

“Many of the measures discussed at the time have not yet been sufficiently implemented,” criticized IG Metall Vice Jürgen Kerner in advance. "In particular, the industrial electricity price is still not sufficient in its current situation. That's why it is no longer enough to re-analyze the challenges," Kerner told the German Press Agency.

The steel summit on Monday must therefore be an “implementation summit”. “The employees expect clear signals and firm commitments for competitive energy prices, effective protection against unfair international competition and reliable conditions for investments in the future of the locations.” Lead markets for green steel must finally be implemented. “We will not stop demanding this loudly and audibly,” continued Kerner. “If you want a climate-neutral and resilient industry, you also have to create the conditions for it.”

Industry association demands concrete decisions

“The German steel industry continues to be under enormous pressure,” said the managing director of the Steel Association, Kerstin Maria Rippel, to the German Press Agency. “Internationally uncompetitive energy prices, weak demand and global overcapacity are putting a massive strain on our companies.” At the same time, we are faced with the task of converting production to be climate-neutral. “The National Steel Summit must therefore not stop at a renewed commitment to the steel industry.” Concrete decisions are necessary, for example to strengthen competitiveness.

North Rhine-Westphalia's Economics Minister Mona Neubaur (Greens) is also traveling to Salzgitter with clear expectations: "We finally need competitive energy prices, reliable framework conditions for the market ramp-up of climate-friendly steel and effective protection against unfair trading practices," she told the German Press Agency. “Our steel companies don’t need new promises, just decisions they can build on.” Without a strong steel industry there would be no strong industrial future - “neither for North Rhine-Westphalia nor for Europe”.

In the run-up to the steel summit, the trade union-affiliated Hans Böckler Foundation referred to a study published in the summer by economists at the University of Mannheim. Accordingly, climate-neutral steel production in Germany is internationally competitive under certain industrial policy conditions. This requires, among other things, a long-term cap on industrial electricity and hydrogen prices. There must also be government support for investments in climate-neutral production, which is linked to location commitments.

Related topics

GermanyCDUIG MetallNorth Rhine-WestphaliaLower SaxonyEurope

What role does the steel industry play in Germany?

The steel industry plays a central role because steel is required for many products. This applies, for example, to car manufacturing, the construction industry and mechanical engineering. But even household appliances can't do without them. Not all steel is the same: The companies offer more than 2,500 types of steel - for example for wires, sheets, rods, pipes or rails.

Around 80,000 people are directly employed in the steel producing industry. Large companies include Thyssenkrupp Steel, Salzgitter, ArcelorMittal, Dillinger and Saarstahl. According to the Steel Association, around four million people work in the next stage of the value chain in so-called steel-intensive industries.

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