Council of States examines measures to save Stahl Gerlafingen

Published: Tuesday, Jun 11th 2024, 13:41

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The Council of States is having the responsible committee examine immediate federal measures to save the Gerlafingen SO steelworks. The Swiss steel manufacturer announced at the end of March 2024 that it would be shutting down one of its two production lines for economic reasons.

The examination of immediate measures to save the steelworks, which was requested on Tuesday, was entrusted to the responsible committee by Damian Müller (FDP/LU).

With her motion, Solothurn Council of States member Franziska Roth (SP) originally demanded that the Federal Council, the company management and the government of the canton of Solothurn take immediate measures to save the steelworks, which is in crisis, by means of emergency legislation if necessary.

If the steelworks were closed, Switzerland would lose its only plant that closes the corresponding metal cycles, produces construction steel and secures raw materials domestically, according to the motion text. Stahl Gerlafingen is of systemic importance for Switzerland, Roth wrote.

The Federal Council takes a different view: although the steelworks is an important supplier to the Swiss construction industry, the concept of systemic importance refers to the economy as a whole. It is only applicable if the failure of a company could lead to at least a severe recession.

In the case of the steel-producing companies, no such risks could be said to exist. The constitutional requirements for the application of emergency law were therefore not met.

According to the company, the closure of one of the two production lines will affect a maximum of 95 jobs. The measures were unavoidable due to the "distorted competition" in the European steel market, Stahl Gerlafingen announced at the end of March. The company has been "effectively confronted with an EU import ban" since mid-2023. This primarily affects the export of so-called wide flat steel.

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