95 jobs affected: Stahl Gerlafingen shuts down entire production line

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Now it’s a fact: Swiss steelmaker Stahl Gerlafingen is closing one of its two production lines. This step was already threatened in mid-March and currently affects a maximum of 95 jobs.

The justification was stated that the measures were inevitable due to “distorted competition” in the European steel market. The closure is intended to secure the future of the steel mill.

The closure of the production line will cause job losses of up to 95 people. A social plan was prepared for those directly affected. In addition, some of the reduction must be achieved through natural fluctuation.

Steel exports face difficult conditions

Stahl Gerlafingen has been “effectively facing an import ban from the EU” since mid-2023. This situation particularly affects the export of wide flat steel. Additionally, according to the company, there are “major” support measures in place for the European steel industry, causing the Swiss mill’s sales and margins to shrink.

“In addition, the currently horrendous energy prices in Switzerland compared to Europe and the record grid taxes on energy have put Stahl Gerlafingen’s balance sheet in deep red,” the company, owned by the Italian Beltrame family, wrote.

Meanwhile – as previously announced – the steelworks itself, the combined road, the environmental center and maintenance will be largely excluded from future measures. This will protect parts that are systemically important for Switzerland and will ensure the supply of strategically important steel products.

Partial closure has been a problem for a long time

The steel mill produces approximately 50 percent of the structural steel needed annually in Switzerland from local steel scrap. If it were to be closed, Swiss steel scrap would have to be taken abroad.

Partial closure has long been a political problem in Stahl Gerlafingen. The company’s previous calls for help to the federal government in July 2023 are said to have gone unheard. Almost two weeks ago, Economy Minister Guy Parmelin announced on Swiss radio SRF that he did not consider the Swiss steel industry systemically important.

The company’s boss, Alain Creteur, explained in his statement that politicians were intensively searching for a solution to the steel mill problem last week: “We were very positively surprised and we want to thank you very much for your support.”

Ultimately, the measures promised by politicians will only come into force in the future and therefore it will be too late to keep Profilstrasse operational. “Given the general situation, there is no alternative to measures such as closing the Profilstrasse if we want to secure the remaining jobs,” Creteur said. (SDA/rule)

Source :Blick