Germany is awaiting the approval of a €2 billion subsidy for ThyssenKrupp from the EC

The European Commission (EC) is expected to approve a €2 billion German state subsidy to steelmaker ThyssenKrupp to build a green steel plant in Duisburg. Reuters informs about it with the reference to a source in the Ministry of Economy of the country.

Approval could come in the coming weeks, the source said, after an agreement was reached on how the project would meet state funding requirements. Thyssenkrupp declined to comment. The news comes ahead of protests planned by workers at the German company who fear subsidies for the project may be lower than expected.

In accordance with its climate strategy for the production of environmentally friendly steel, ThyssenKrupp plans to put into operation a plant for the production of direct reduction iron (DRI) with a capacity of 2.5 million tons per year. The start of production is planned for 2026. The company estimates the costs of implementing the project at €2 billion.

As GMK Center reported earlier, the German government plans to allocate for ThyssenKrupp about €2 billion for the construction of a plant in Duisburg. €700 million of this amount will be provided by the German state of North Rhine-Westphalia, where the company’s headquarters are located. German Economy Minister Robert Habeck visited Essen and Duisburg to hold talks with ThyssenKrupp management and union representatives as the company fears Berlin will not support the steelmaker’s decarbonisation.

As GMK Center reported earlier, in early March 2023, ThyssenKrupp announced that it selected SMS Group as the main engineering contractor for the transition to DRI technology at its steelworks site in Duisburg, Germany. Midrex is a familiar partner for SMS. For a new enterprise Midrex Flex technology is chosen, which provides the flexibility to work with different gas-to-hydrogen ratios, including 100 percent hydrogen.

  • Companies

Metinvest is transforming its business according to ESG principles to operate in the EU market

The European Union is introducing new non-financial reporting standards that radically change the requirements for…

Thursday June 5, 2025
  • Industry

Ukrainian Railways successfully held 7 auctions for the sale of scrap for UAH 13 million

On June 5, 2025, JSC Ukrainian Railways (UZ) successfully held 7 auctions for the sale…

Thursday June 5, 2025
  • Global Market

EU extends suspension of steel safeguard measures for Ukraine

The EU Council has adopted a resolution to extend the suspension of EU safeguard measures…

Thursday June 5, 2025
  • Global Market

New US duties disrupt EU steel market recovery by 2026 – EUROFER

The new 50% US tariff on steel imports has dealt a powerful blow to the…

Thursday June 5, 2025
  • Global Market

German government approves €46 billion tax break package for companies

On June 4, the German government approved a €46 billion package of tax breaks –…

Thursday June 5, 2025
  • Global Market

Global energy investment to reach record $3.3 trillion this year – IEA

In 2025, global energy investments will reach a record $3.3 trillion, of which more than…

Thursday June 5, 2025