Germany’s SHS plans to receive €2.6 billion from the government for green transition

The German government plans to provide €2.6 billion to the local steel company Stahl-Holding-Saar (SHS) for its environmental transformation. This was announced by German Economy Minister Robert Habeck, Reuters reports.

It is noted that a few weeks ago, the decision of the Constitutional Court shook Germany’s spending plans, and many companies hoping to receive government subsidies to finance the green transition were in limbo.

During the recent visit of the German Minister of Economy to SHS, he assured that Berlin is now close to receiving permission from the European Commission to help industry.

He emphasized the importance of providing financial assistance to steel companies in carrying out costly green reforms in line with climate goals. In addition, the minister warned that if the authorities do not act, Germany’s attractiveness as a location for companies will be undermined.

«If steel production in Germany is uncompetitive, the industry will lose not only the steel mills, but also the automotive industry and the distribution industry,» noted Robert Habeck.

The IG Metall trade union welcomed the government’s support for SHS.

As GMK Center reported earlier, Germany in January-October 2023 has reduced  steel production by 4.1% compared to the same period in 2022 – to 30.12 million tons. In September 2023, steel production by German steelmakers fell by 8.8% compared to October 2022, and by 0.9% compared to from September – to 2.88 million tons.