The turbulent history of the Maxhütte in the Upper Palatinate is richer by a chapter. When mechanics, machine operators and electronics technicians marched into the large production hall shortly before 11 a.m. on Wednesday, it was not yet clear whether they would still be producing pipes here in the future – or whether they would have to look for another job. Whether the history of what was once the largest steelworks in southern Germany will finally come to an end at this works meeting.
The men in suits and ties are standing next to a small speaker’s platform set up between control desks and steel pipes: insolvency administrators, managing directors, consultants. And across from them in overalls, in safety vests or overalls, with hard hats and hearing protection dangling around their necks. Suit wearers here, workers there. It is an image that has become rare in Germany. But there is still the link Karl-Heinz König, Chairman of the Works Council. He has been working here for almost 40 years. Originally as a lathe operator, since 2004 he has been released as chairman of the works council.
“The closure is off the table. It will continue,” announced König shortly after 11 a.m., visibly relieved. The workers gossip, not euphorically, rather cautiously. The workforce had to fear for their 450 jobs for a long time, “the last few weeks have been bad,” says König. There are two investors who have made a firm commitment. Now it still has to be clarified which of the two prospective buyers has the better concept for a future-oriented tube mill. The new owner should be announced in a week. “The devil would have to act if that didn’t work,” says one of the insolvency administrators. Here, however, they already had enough to deal with the devilish properties of the economy.
And for many, not only does their livelihood depend on the Maxhütte, but also their hearts. “The pipe mill is still one of our biggest employers,” says the mayor of Sulzbach-Rosenberg, Michael Göth (SPD). Many new companies have meanwhile settled down, but the Rohrwerk is “the last piece of Montan history” to which the people of the city are very attached. He himself did his technician training at the plant forty years ago. Father and grandfather already worked here. When he leaves the hall after the good news, he quickly greets his nephew, who is just climbing the stairs to the control panel and getting back to work.
A private financial investor from Munich only took over the plant in the summer of 2021. In December, the company nevertheless filed for bankruptcy under self-administration. The corona pandemic and rising steel and energy costs hit the plant. In addition, there are supply bottlenecks for materials and logistics problems. The war in Ukraine has meanwhile exacerbated the situation across the industry.
In the future, they want to obtain the electricity for production from a solar field
Above all, however, energy security has been considered in the Maxhütte and attempts have been made to make a virtue out of the necessity of the impending closure. They are also dependent on Russian gas here. That’s why the in-house technicians came up with the concept of the “green pipe mill”. In the future, the company is to be operated entirely with electricity from a solar field nearby. This requires investments first. But in the end, according to König, these would pay off, and energy costs could be drastically reduced.
To what extent the “green pipe mill” will play a role in the new purchase agreement, none of those responsible can say. “It doesn’t matter who buys the plant,” says König, “we will definitely implement it.” When Economics Minister Hubert Aiwanger (Freie Wahler) visited the plant in May, the workforce was unable to wrest millions of government aid from him, but at least some respect for their green concept. He will “vehemently and actively support the further development of the plant,” said Aiwanger after the announcement of continued operation.
Maxhütte was once the largest steel works in southern Germany
The poker game around the company brings back memories of 2002, when the Maxhütte steel mill, the big brother of the Rohrwerk, so to speak, was closed. The Maxhütte in today’s district of Amberg-Sulzbach was once the largest steel works in southern Germany. At its peak, 5,000 people worked here. Maxhütte settled in Rosenberg in 1863, and the pipe works have been in existence since 1952. This marked the beginning of the industrialization of the Upper Palatinate, which had previously been characterized by agriculture. But Maxhütte was also important for the whole of Bavaria: At times, production in the Upper Palatinate covered half of Bavaria’s steel and iron requirements.
What is left of what was once the largest steel works in southern Germany: The Rohrwerk Maxhütte in the Upper Palatinate.
(Photo: Deniz Aykanat)
Maxhütte had to file for bankruptcy in the 1980s and 1990s, but was always able to pull itself together. In 2002, the steel works finally came to an end. 850 workers lost their jobs. A catastrophe for the still rather structurally weak region, whose economic basis was once heavy industry. In the meantime, the Upper Palatinate has flourished economically. The unemployment rate is 2.4 percent, the lowest of all Bavarian administrative districts.
The Rohrwerk is the last remaining part of the Maxhütte. The steelworks a few hundred meters away is rusting away. Green here, reddish brown there. Future plan here, no plan there. With its blast furnace and slag heap, it is actually the largest industrial monument in Bavaria. But that’s the thing with commemoration. The slag heap has at least been cleaned up in the meantime. But there is still no concrete route for the rest of the area. Parts of the complex were demolished years ago. September marks the 20th anniversary of the shutdown of the steelworks.
“Anyone who works at Maxhütte is used to living with the crisis,” says König at the end of the works meeting. He has already witnessed three bankruptcies. Ronja Endres, chairwoman of the Bavarian SPD, criticizes the trembling about the plant as “unnecessary and cruel” towards the employees. “The departure of qualified personnel could have been avoided if the CSU and Free Voters had shown interest in the pipe plant earlier.” König, in a work jacket and hard hat, once again appealed to his colleagues to stick to the plant. “Once the contracts are signed next week, we might be able to exceptionally lift the ban on alcohol in the Rohrwerk.” Mumbling laughter. “And now let’s get to work. Good luck!”