Duisburg's steel crisis: 11,000 jobs in danger - city on the abyss!

Duisburg's steel crisis: 11,000 jobs in danger - city on the abyss!

Duisburg, Deutschland - Duisburg is faced with existential challenges in view of current developments in the steel industry. Thyssenkrupp in particular is planning a drastic reduction in jobs in the region, which could prove to be devastating for the local economy. This reports Derwesten.de .

In a new study by the German Economy Institute (IW Consult), it shows that the steel industry is a decisive economic factor in Duisburg. The sector offers over 18,000 jobs, with Thyssenkrupp, HKM and Arcelor Mittal being the largest employers. Even more alarming is the fact that the proportion of the steel industry in the gross domestic product (GDP) in Duisburg is almost 47 times higher than in the nationwide average.

massive job losses threaten

Thyssenkrupp plans to break up the group and the reduction of up to 11,000 jobs, which also affects HKM, where the closure of 3,000 positions is imminent. For Arcelor Mittal, the renovation could affect around 1,000 employees. Over 1,000 more jobs would reduce the GDP for 120 million euros and negatively influence a further 1,200 workers.

The worst-case scenario could result in a decline in GDP by 6.2 percent. This would also heavily burden the federal tax revenue, the federal states and municipalities. Forecasts assume a loss of 773 million euros in tax revenue nationwide, with Duisburg alone with a loss of 30 million euros, especially in the area of ​​wage tax.

an uncertain outlook for steel production

To meet the challenges, Thyssenkrupp plans to reduce the production capacities in Duisburg from currently 11.5 million tons to around 9 to 9.5 million tons per year. The reasons lie in the weak market situation, high energy costs and an increasing import pressure from Asia. The uncertainties also increase the tense economic conditions caused by economic developments and structural changes in the European steel market.

The future of the steel industry

While current developments are worrying, there are approaches that could have a positive effect on a transformation of the steel industry. According to oliver Wyman , a successful transformation could also be crowned by economical and ecologically. A decarbonized steel industry can not only contribute to strengthening the technology leadership of German companies, but also improve their supply and customer networks.

In order to promote this change, the committed cooperation of all those involved is crucial. In the event of difficulties in implementation, determined measures must be taken to secure the transformation and to stabilize the German economy.