An employee walks past coiled steel (coils) at Salzgitter AG in Lower Saxony (Germany). (picture alliance/dpa)
The German government is moving to help the stricken steel sector in a bid to rescue jobs and preserve the industry's long-term prospects. The cabinet agreed on Wednesday to a "concept of action" with Economics Minister Peter Altmaier (CDU) saying that the steel industry was a key part of the national economy. It was necessary now to act so that the steel industry in 30 years' time will still be competitive and able to produce in a climate-friendly fashion in Germany.
The action plan worked out with the industry foresees various measures. At the European Union level, Berlin will seek so-called carbon-leakage protection to ward off companies heading to other countries with less stringent environmental standards.
Germany's steel sector is beset by overcapacity and dumping prices on the world market. Atop this comes the downturn resulting from the corona crisis, among others by a massive drop in demand in automotive markets.
The action plan paper foresees investments of some 30 billion euros in the next 30 years to help the steel industry in its long-term efforts towards more climate-friendly production.
Juergen Kernen, an executive board member of the metalworkers union IG Metall, said the industry could not face the challenges on its own. Job security for workers can only be achieved if the industry now embarked in the direction of climate neutrality, he said.
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