Day: 5 September 2023

The major mills in Germany’s Saarland region have joined the global Responsible Steel initiative, Kallanish hears from their parent holding, Stahl-Holding Saar (SHS).

SHS encompasses platemaker Dillinger Hütte and special bar qualities maker Saarstahl. It recently launched a label for low-emission steels under the name Pure Steel+.

“Our membership in ResponsibleSteel shows what motivates us: responsibility for sustainable steel production entirely in line with Pure Steel+,” says SHS chief executive Stefan Rauber. “The initiative’s multi-stakeholder concept emphasises that to achieve a sustainable value creation process, all levels of the steel supply chain must contribute.” The two mills together account for 5 million tonnes/year of steel production.

ResponsibleSteel has over 130 members worldwide, including steel producers and buyers as well as mining companies and civil society organisations. Among other things, the non-profit organisation has developed an independent certification programme for the steel value chain that can be used to certify companies. Its German members so far include thyssenkrupp Steel, the mills of ArcelorMittal, but also distributors like Stahlo.

Christian Koehl Germany

Germany’s automotive suppliers do not anticipate a boost for business this autumn, according to their interest group, ArGeZ, a subgroup of steel and metals fabricators association WSM. In a statement issued this week, the group addresses some burdens that have aggravated its members.

The current sentiment is not a consequence of shock effects like the Covid pandemic or the Russian invasion of Ukraine, but reflects a structural crisis in Germany as an industrial location, ArGeZ says. Small and medium-sized enterprises, in particular, do not have the flexibility to avert the unfavourable regulatory conditions of the government, but also of the OEMs, ArGeZ notes.

The interest group points to the high prices for gas and power, which it says are a multiple of those paid in France or the USA, for example. As steel federation WV Stahl did previously, ArGeZ has called on the government to provide a capped electricity price for manufacturing industries for a limited period of time, Kallanish notes.

Another main issue it addresses is bureaucracy, which needs to be trimmed to size, says its spokesman Christian Vietmeyer, who is also managing director of WSM. Apart from governmental bureaucracy, he attacks the bureaucracy formed by companies misusing the idea of sustainability. “The ‘sustainability’ label is used to flood smaller suppliers with ever new requests for declarations and documentation. Medium-sized companies drown in excessive questionnaires with repetitive and often absurd questions,” he observes.

This has grown to a painful degree that was not intended by the legislator, and has gone beyond reason and common sense, he notes on behalf of the interest group.

Christian Koehl Germany

Tata Steel remains in talks with the UK government over support for the decarbonisation of its Port Talbot plant, the firm has said in response to media reports over the weekend.

According to Sky News, the UK government will offer Tata Steel £500 million ($631m) in funding, while Tata itself will commit £700m in capital expenditure. The news agency cites sources saying the terms of an agreement were subject to change, but that there were hopes of finalising it as early as this month.

However, the plan could come at a cost – the loss of 3,000 jobs over the long term, Kallanish notes.

“Tata Steel is continuing to discuss with the UK government a framework for continuity and decarbonisation of steelmaking in the UK amidst very challenging underlying business conditions given that several of its heavy end assets are approaching end of life,” the steelmaker says.

“Given the financially constrained position of our UK business, any significant change is only possible with government investment and support, as also seen in other steelmaking countries in Europe where governments are actively supporting companies in de-carbonisation initiatives,” it adds.

Unite the Union general secretary Sharon Graham observes: “This government could make us the green steel capital of Europe – instead they are choosing to follow a job cuts agenda. Unite will leave no stone unturned in the fight for jobs. We will now be mounting a significant campaign on this issue and we fully expect the Labour Party to make a serious commitment to a better future for UK Steel.”

Adam Smith Poland