Thyssenkrupp pauses steel production at two sites citing Asian pressure

By AFP
December 11, 2025


Specialist sites in Gelsenkirchen in western Germany and Isbergues in northern France that make high-end steel often used in power grids would close from mid-December to the end of the year, Thyssenkrupp's steel subsidiary said. - Copyright AFP Kirill KUDRYAVTSEV

Europe’s largest steelmaker Thyssenkrupp is to pause steel production at two sites for about two weeks because of Asian competition, the German firm said Thursday, as the European Union considers tightening its steel tariffs.

Specialist sites in Gelsenkirchen in western Germany and Isbergues in northern France that make high-end steel would close from mid-December to the end of the year, Thyssenkrupp’s steel subsidiary said.

The French site would further run only at half-capacity for at least four months from January, it added.

The measures were in response “to a massive increase in low-priced imports, particularly from Asia,” Thyssenkrupp Steel Europe said.

“These developments have led to a dramatic change in order volumes and thus to a significant underutilisation of capacity at European production facilities.”

Hammered by exorbitant energy costs and cheaper Asian competition, Germany’s steel industry has been mired in deep crisis for several years.

Thyssenkrupp Steel Europe said in November last year it would seek to cut or outsource 11,000 jobs by 2030 — about 40 percent of its workforce –- and cut production capacity to around nine million tons a year, down from 11.5 million.

Taking a leaf from US President Donald Trump’s book to shield the bloc’s struggling industry from cheap Chinese imports, the EU in October floated plans to double tariffs on foreign steel and cut the amount allowed in tariff-free.

“The rapid implementation of efficient and appropriate trade protection measures at European level would help to increase capacity utilisation at both locations back to a sustainable level,” Thyssenkrupp Steel Europe said, adding that about 1,200 people were employed at the two sites.

The wider Thyssenkrup group said on Tuesday that it expected to make a loss of up to 800 million euros ($932 million) next year, largely driven by the costs of restructuring its steel division.

Bleak year for German engineering firms amid US, China turmoil


By AFP
December 9, 2025


Germany's mechanical and plant manufacturing group VDMA is urging the government to improve conditions for companies - Copyright AFP/File Fabrice COFFRINI

Production in Germany’s key engineering sector plunged for a third straight year in 2025 as firms were squeezed by US tariffs and fierce Chinese competition, an industry group said Tuesday.

The VDMA, which represents some 3,600 companies in the export-oriented machinery and equipment manufacturing sector, expects production to fall five percent for the full year.

But it should pick up next year, tracking a broader upswing in Europe’s struggling top economy, with output set to rebound one percent, the group added.

VDMA President Bertram Kawlath added his voice to calls for the government of Chancellor Friedrich Merz to urgently take steps to improve conditions for companies in Germany.

“Genuine, far-reaching reforms in Germany are essential if we want to prevent more and more research, production and — thus innovation — from taking place abroad,” he said.

The sector, whose companies employ more than one million workers in Germany, has been hard hit by US President Donald Trump’s tariffs, particularly the 50-percent duties on steel and aluminium.

Two-thirds of about 400 companies that participated in a VDMA survey expect a decline in revenues due to the tariffs.

Describing the levies as “poison”, Kawlath urged Germany and the European Union to seek to renegotiate them, saying they were counterproductive for both sides.

An even bigger challenge was competition from Chinese companies that are increasingly rivalling German firms in more and more sectors, and in some cases benefitting from government subsidies, the VDMA warned.

“Our companies are fighting with all means to remain competitive, but in many cases that is no longer enough,” said Kawlath, urging an improvement in conditions in Germany through such measures as slashing red tape.

He called on the EU to strengthen its “inadequate” market oversight and block imports of Chinese products that do meet European standards.

The problems for Germany’s engineering sector reflect a broader downturn in the economy, although a recovery is expected next year on the back of a public spending blitz pushed by Merz’s coalition.

BMW names new boss to steer car giant in tough times


By AFP
December 9, 2025


BMW's production chief Milan Nedeljkovic named as its next chief executive - Copyright AFP Ian LANGSDON

BMW said Tuesday its head of production Milan Nedeljkovic will take over as chief executive as the German auto giant contends with challenges ranging from the electric shift to Chinese competition.

An engineer by training and an employee of the Munich-based manufacturer since 1993, the 56-year-old will succeed current CEO Oliver Zipse in May when he reaches the end of his term, the group said in a statement.

Nedeljkovic currently oversees the group’s factories worldwide, which produce both electric and combustion engine models on the same production lines.

A key task will be advancing BMW’s expansion of its electric vehicle (EV) offerings, already well underway under Zipse’s leadership.

But the Serbian-born executive takes over at a time of deep crisis for Germany’s flagship auto sector.

BMW, which also owns the Mini and Rolls-Royce brands, is seeing its sales decline in the key Chinese market due to strong local competition, particularly when it comes to EVs.

BMW, like domestic rivals Mercedes-Benz and Volkswagen, has also been impacted by US tariffs, although it has fared somewhat better as its largest factory in the world is located in South Carolina.

The carmaker reported rising profitability in the third quarter due to healthy worldwide sales, with Zipse saying the group had proven itself “resilient” in the face of headwinds.