Steel industry in danger: Politicians demand emergency aid for jobs!

Steel industry in danger: Politicians demand emergency aid for jobs!

In a recent press conference after the “Steel Summit”, leading representatives of German politics and industry came together to talk about the challenges facing the domestic steel industry. Among those present were Federal Chancellor Friedrich Merz, Federal Minister Lars Klingbeil, Gunnar Groebler from the Steel Association and Jürgen Kerner from IG Metall. A central theme was the need for an industrial electricity price to ensure the industry's competitiveness, which Friedrich Merz saw as essential for the survival of the steel industry in Germany. “Steel production is a key industry,” emphasized Merz, pointing out the many companies and employees affected by the current developments. According to Deutschlandfunk, politicians must urgently take measures to support the transformation towards climate-neutral steel production.

A look at the numbers speaks volumes: Crude steel production in Germany fell by around 12 percent to just 17.1 million tons in the first half of 2025 - a level that is reminiscent of the 2009 financial crisis. The industry is continually reducing its production capacity, and without competitive energy prices, tens of thousands of jobs are at risk of disappearing, warned IG Metall. In 2024, the steel industry recorded a decline in sales of 5.3 billion euros, while competitive conditions are made significantly more difficult by cheap competition from Asia, especially from China, and by US customs policy, as the Tagesschau reports.

The challenges of the industry

The steel industry is confronted with many adversities: high energy costs and the pressure of cheap steel from Asia represent a massive challenge. Although Germany is the largest steel producer within the EU, European steel production is only 14 percent globally, while Asia covers almost three quarters of global steel demand. Situations like these are hard on domestic manufacturers, which is why voices like those of CDU General Secretary Carsten Linnemann are loudly calling for EU punitive tariffs on the pricing policies of Chinese competitors.

According to Groebler, particularly hard-pressed regions will be affected by these developments, as many jobs here depend on the development of the steel industry. Around 4 million people are employed in steel-intensive industries, of which around 90,000 are directly involved in steel production. A rethink in politics is therefore essential in order to secure social peace by preserving industrial jobs.

Future prospects and measures

A ray of hope could be the planned state-subsidized industrial electricity price, which is to be implemented from 2026 and could provide relief for energy-intensive companies. In addition to large companies such as Thyssenkrupp, which plans to reduce its workforce from 27,000 to 16,000 by 2030, other companies are also trying to reduce their costs with savings measures in the personnel sector. Salzgitter, for example, is planning annual savings of 500 million euros by 2028, which could also lead to job cuts.

“There is a lot to do,” continued Merz, and there are few signs of a recovery in demand, especially from the construction and mechanical engineering sectors. The pressure here is enormous, and without the support of politicians, the unanimous opinion at the summit was that it will be difficult to get the industry back on its feet. The calls for immediate political action can be heard loud and clear.

Overall, the steel summit shows that it is time not only to communicate problems, but also to take concrete steps to improve the situation. The steel industry is and remains a central part of the German economy, and it is the responsibility of all players to secure its future.