thyssenkrupp Steel concludes collective restructuring agreement with the IG Metall union

• Details of reconciliation of interests and social plans agreed
• Agreement will run until September 30, 2030
• Financing of thyssenkrupp Steel secured
• Paving the way for operational implementation of the industrial concept

The negotiating partners have reached a decisive milestone in the planned realignment of thyssenkrupp Steel: Germany's largest steelmaker has reached an agreement with the trade union and company representatives on the outstanding details of the reconciliation of interests, the social plan, and other company agreements. In addition, the financing required for the restructuring period until September 30, 2030 has been secured; the parties have agreed to keep the terms confidential. thyssenkrupp Steel and IG Metall then signed the collective restructuring agreement with a term until September 30, 2030. This paves the way for the industrial concept to be implemented operationally.

Industrial concept as the basis for repositioning thyssenkrupp Steel

The industrial concept developed by the Steel Executive Board and presented in November last year forms the basis for the agreements that have now been reached. It essentially provides for a market-related reduction in production capacity to a shipping level of 8.7 to 9 million metric tons, cutting or outsourcing about 11,000 jobs, and investments including that in the direct reduction plant currently under construction at the Duisburg location.

The restructuring process will now be implemented immediately in order to raise efficiency levels and achieve more competitive cost positions as quickly as possible. Irrespective of this, thyssenkrupp Steel continues to pursue the goal of carbon-neutral steel production in the long term. Construction of the first direct reduction plant at the Duisburg location is ongoing.

Quotes

Ilse Henne, Chairwoman of the Supervisory Board of thyssenkrupp Steel: "Through our joint efforts, we have succeeded in sweeping away the last obstacles on the way to signing the agreement, and we have achieved a viable result. All sides have lived up to their responsibilities here. This is encouraging and sends out a very strong signal for Steel and for the entire region."

Marie Jaroni, CEO of thyssenkrupp Steel: "Since presenting our industrial concept, we have consistently solved the tasks facing us step by step and, by concluding the collective restructuring agreement, we have cut the Gordian knot so we can make thyssenkrupp Steel fit for the future. Our goal is very clear: over the long term, we aim to occupy a leading position in the European competitive environment. We have now created the prerequisites for this."

Wilfried von Rath, CHRO thyssenkrupp Steel: "The agreement and signing of the collective restructuring agreement represent strong signs: together, the company and employee representatives have developed a forward-looking agreement for Steel. We have also got to be open and honest about this: there will be a lot of lay-offs and we will be making some swinging cuts. But we are doing this to become more competitive and secure as many jobs as possible for the future. The collective restructuring agreement and company agreements show that we want to pursue this policy with a fair-minded approach, a sense of proportion and, above all, without compulsory redundancies."