Despite the budget crisis, the steel industry in Saarland is to receive 2.6 billion euros in state aid to develop “green” production. Federal Economics Minister Habeck promised this during a visit to Völklingen.
Federal Minister of Economics Robert Habeck has promised billions in support from the state to convert the Saarland steel industry to “green” production. “You wanted 2.6 billion, you will get 2.6 billion,” said the minister today during a visit to the Saarland steelworks in Völklingen.
Employees of Stahlholding Saar at an event in Völklingen.
The budget crisis and the Federal Constitutional Court’s recent ruling on the debt brake had recently given rise to uncertainty as to whether the promised aid for converting steel production to more climate-friendly production will actually flow.
Habeck told 3,000 Völklingen steel workers today that the federal government had notified the project. Now all that is missing is approval from the European Union. But no project has ever failed at this stage. Part of the billions in aid should come from the Saarland state budget.
Competitors also receive money from the federal government
“It is the largest single funding that we have ever provided in the history of the Federal Republic,” said the Green politician. Steel is the backbone of German industry.
The two competitors Salzgitter and Thyssenkrupp had previously received funding commitments from the federal government. The EU Commission approved aid of up to two billion euros for Thyssenkrupp in the summer. The companies’ plans are about switching steel production from coal and coke to hydrogen produced with the help of renewable energies in the long term.
“Today is historic”
The CEO of Stahlholding Saar, Stefan Rauber, welcomed the announcement by the Federal Minister of Economics. The first representative of IG Metall Völklingen, Lars Desgranges, said: “Today is historic.” Prime Minister Anke Rehlinger (SPD) spoke of good news for the entire Saarland economy.
In total, the conversion of the systems at the Völklingen and Dillingen locations is expected to cost around 3.5 billion euros. Stahlholding Saar employs around 14,000 people and is the third largest steel manufacturer in Germany with an annual production of around five million tonnes of steel per year. The companies Saarstahl and Dillinger produce it.
With information from Florian Mayer, SR.