Swiss steelmaker Stahl Gerlafingen is suspending the job cut plans it announced a month ago, as it is hoping for political measures to improve cost conditions.
The company said in October it plans to make another 120 employees redundant, after it had already axed a large number of jobs in spring, when it closed the production line for sections.
In coordination with owner Beltrame, Stahl Gerlafingen’s management will be awaiting the outcome of discussions at political level to alleviate costs. In the meantime, rebar maker Stahl Gerlafingen will instead introduce short working hours, and avoid layoffs, it says in a statement seen by Kallanish.
The mill’s chief, Alain Creteur, has thanked policymakers and administrative bodies for support, and says he hopes the measures will be approved. Such political measures “would somewhat cushion the distortion of the market by the EU”, the statement says, without explaining the EU’s alleged wrongdoings.
The measures under discussion include a temporary reduction of grid fees, an obligation for domestic construction projects to use domestic steel, and a recycling fee for steel. These measures could provide Stahl Gerlafingen with a perspective for the future, allowing Beltrame to hold on to the mill. Beltrame has invested CHF 450 million ($473m) in the mill’s efficiency improvement, and would be willing to continue re-investing future profits, the statement says.
Christian Koehl Germany
