Thyssenkrupp Steel and the German metallurgists' union IG Metall have reached an agreement to restructure the company in order to remain competitive in the medium term under a new collective agreement. This is reported in a Thyssenkrupp press release.
The Steel Realignment program ("Steel Production Reorganization"), based on an industrial concept and a collective agreement with IG Metall, will enter into force at the end of September 2025 for a period until September 30, 2030.
The two sides have reached an understanding on the key elements of the operating agreements required for the restructuring, taking into account the social compensation plan.
As part of the program, it was agreed to reduce production capacity to 8.7–9 million metric tons of steel due to the closure of blast furnaces No. 9 and No. 8, as well as the closure of the Bochum hot rolling workshop in early 2026 and the electrical steel production site by the end of the 2027/28 fiscal year. At the same time, the Eichen plant will continue to operate, taking into account the revision of the concept of optimizing the production site in Siegerland (Germany).
In addition to the investments required for the maintenance of installations and equipment, as well as for the construction of a direct recovery unit, Thyssenkrupp will provide funds for the modernization of the continuous casting line of blanks supplied to the Hohenlimburg plant (Germany). In addition, the parties agreed on investments in the modernization of the production of electrical steel.
The restructuring of production facilities will be accompanied by a staff reduction of 1.6 thousand employees by the end of the 2028/29 fiscal year. In addition, measures will be taken to increase staff efficiency in order to optimize production, which will affect about 4,000 employees, taking into account outsourcing.
The negotiations required significant concessions from both sides in order to reach a compromise and reconcile industrial and social interests.
Thyssenkrupp Steel is a German supplier of carbon steel sheets for the automotive, packaging and energy sectors. The headquarters is located in Duisburg (Germany). Thyssenkrupp Steel is a subsidiary of ThyssenKrupp AG.
ThyssenKrupp AG is a German multinational conglomerate in the field of industrial engineering and steel production. The company was formed as part of the merger of Thyssen AG and Krupp AG. The headquarters are located in Duisburg and Essen (Germany).
IG Metall is a German trade union that unites workers in the field of metallurgy and metalworking. IG Metall is one of the largest trade unions in Germany, uniting together with the Ver.di trade union about 15% of German workers and 70% of trade union members.
