Ditching Green Steel: Arcelor Mittal Kills Plans in Bremen, Leaving Mayor Disappointed
"Unfavorable Decision Upending Bremen Steelworks": Bovenschulte's Proposed Plan
The steel behemoth, Arcelor Mittal, has abandoned its ambitions for green steel in Bremen. Mayor Andreas Bovenschulte of Bremen, however, is not amused, as he stated in a recent interview.
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No green makeover for the Bremen steelworks, for now. Arcelor Mittal issued a statement announcing the company could no longer move forward with the plans to "decarbonize the flat steelworks in Bremen and Eisenhüttenstadt."
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What's next for the steelworks and its labor force in Bremen? Andreas Bovenschulte (SPD), Bremen's mayor, shed light on the matter in our recent discussion.
Mr. Bovenschulte, when did you learn the renovation at Arcelor Mittal was put on hold?
Recent intense negotiations indicated the company would submit an application to extend the deadline for the funding decision. This led us to believe the situation was difficult but that we would have a few more months to secure a favorable result. Then, suddenly, the decision came, stating that no direct reduction plant and initially no electric arc furnace would be built. These are the essential technology required to produce green steel.
The company also lists reasons: demand for steel is too low, electricity is too expensive - the overall conditions just aren't right. What's the company's environment saying?
It's clear that the steel industry's conditions are not favorable at the moment, and they affect the Bremen plant as well. However, the Bremen plant is robust and well-utilized. It's not on the verge of extinction. Yet, like other plants, it struggles amid an economic crisis and steel market woes. Despite this tough environment, I expected more entrepreneurial spirit from the company, to persevere and stick to the plans already taken. After all, funding for around €840 million was available from both the federal government and the state.
Many employees will wonder: Is my job secure? What do you say to them?
In the short term, the steelworks cannot escape the crisis. However, there's no existential threat. In the long run, though, the challenge lies in figuring out how to produce steel economically when CO2 prices rise significantly. Now, the company is tasked with presenting a clear vision for the plant's future.
When should we expect this vision?
First, Arcelor Mittal needs to present a plan stating their intention to develop a vision for the location under the new conditions. This plan ought to include a clear statement on the continuation of decarbonization plans.
The company is essentially in control here. What can you do now?
frankly, this decision was made by the company. Thus, it's accountable. I imagine the employees, the works council, and IG Metall will exert pressure and express their displeasure. Our role as politics is to continue advocating for decarbonization for the climate and long-term economic viability. I've already done so in my conversations.
How significant is the risk that Bremen loses its industrial edge without this restructuring?
This news is certainly not good. Hence, the pressure must remain. We must demand a future plan for the plant. Only Arcelor Mittal can provide this. I can't predict percentages, but it's clear that this decision is unfavorable for the Bremen location – but it's not reason to surrender. The fight must continue.
This decision is also bad from a climate perspective. How long will traditional steel production in Bremen remain viable?
That's a challenge because in a few years, CO2 prices will be so high that steel production using conventional methods with high CO2 emissions will no longer be economically viable. For this reason, we need to continue on the path to climate neutrality and green steel. There's no direct reduction and no electric arc furnace yet. This should be reconsidered, otherwise, there will be no long-term perspective. Our stance – and I believe the employees share this – is clear: We need to see Arcelor Mittal's clear plans for the future.
- The announcement by Arcelor Mittal to abandon plans for green steel production in Bremen has raised concerns about the future of the steelworks, particularly in the context of the ongoing push towards decarbonization in the energy and finance industries, which are closely tied to the general-news agenda.
- In light of the company's decision, the Mayor of Bremen, Andreas Bovenschulte, is advocating for a vision for the plant's future, articulating the need for Arcelor Mittal to present a clear plan for continuing the decarbonization plans and ensuring the long-term viability of the business.
- The city of Bremen, along with employee groups and labor unions, will likely exert pressure on Arcelor Mittal to reconsider its decision, considering the significance of the plant for the local economy and the climate implications of traditional steel production.
