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

BYD has chosen voestalpine as its steel supplier for its Hungarian car plant

Chinese car manufacturer BYD has signed a strategic cooperation agreement with leading European steel producer…

Sunday June 29, 2025
  • Companies

Tenaris has begun construction of its second wind farm in Argentina

Tenaris has announced the start of construction of its second wind farm in Argentina, La…

Saturday June 28, 2025
  • Companies

Metinvest has created protective armor for Patriot air defense systems

As part of the Steel Front initiative, Metinvest Group has manufactured and installed special protective…

Saturday June 28, 2025
  • Companies

Arvedi Group raises €900 million to expand production and decarbonize

Italian steel company Arvedi Group has raised €900 million in financing to implement a large-scale…

Friday June 27, 2025
  • Global Market

Domestic demand for steel in China continues to fall

Domestic demand for steel in China, according to market participants' estimates, continued to fall in…

Friday June 27, 2025
  • Industry

Construction works performed in Ukraine in January-April fell by 13% y/y

The index of construction work performed in Ukraine in January-April 2025 decreased by 13% compared…

Friday June 27, 2025