Thyssenkrupp Electrical Steel to suspend operations at two plants in Germany and France

Thyssenkrupp Electrical Steel (TKES), a division of German industrial group Thyssenkrupp that manufactures electrical steel, will shut down two plants in Gelsenkirchen (Germany) and Isbergues (France). This was announced in a statement by the company.

As a result, 1,200 jobs are at risk.

The shutdown will last from mid-December until the end of this year. From January 2026, the plant in France will operate at 50% capacity for at least four months.

As noted, TKES is responding to a significant increase in cheap imports, especially from Asia.

«The European market for grain-oriented electrical steel is currently under severe pressure due to a sharp increase in imports at prices significantly below average production costs in the EU. Imports have tripled since 2022 and will increase by another 50% in 2025. These developments have led to a sharp shift in customer orders and, as a result, to a significant underutilization of European production capacity. Therefore, immediate measures are needed to ensure economic stabilization of operations,» the company said.

However, Thyssenkrupp Electrical Steel notes that the market for these products remains attractive, with global demand expected to triple by 2050.

The introduction of effective and appropriate trade protection measures at the European level in the near future will help increase capacity utilization at both facilities to a sustainable level, the statement said.

TKES is one of two European manufacturers of grain-oriented electrical steel, a specialized material for use in the energy industry.

As a reminder, Thyssenkrupp expects its net loss to reach €800 million in the 2025/2026 financial year (ending September 30, 2026). The company’s forecasts are based, among other things, on the costs of restructuring its steel division.