Stahl Gerlafingen threatens to close production line
Published: Friday, Mar 15th 2024, 15:40
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The Swiss steel manufacturer Stahl Gerlafingen wants to shut down one of two production lines. With this step, the management wants to ensure the survival of the company.
As the company announced on Friday afternoon, the production of so-called wide flat steel in Switzerland is no longer profitable. The reason for this is the "unfair" competition for exports to the EU. In addition, the high energy costs and grid charges in Switzerland are making steel production more expensive.
As the EU has imposed quotas on steel imports from third countries as a result of the trade conflict with the USA, the steel quotas are currently being used almost exclusively by suppliers from third countries such as Brazil, Vietnam and Egypt. Stahl Gerlafingen is unable to counter their delivery times of just a few hours in some cases. The current situation is therefore tantamount to an export ban to the EU, the report continues.
Partial closure of production threatened
In order to secure the company's continued existence, the management therefore feels compelled to take drastic steps. Specifically, one of two production lines, the profile line, is to be closed. There will be no impact on the steelworks, the combi line, the ring center and the corresponding maintenance of upcoming measures, according to the statement.
However, the final decision to close has not yet been made. The management, together with the owner, the Beltrame family, has initially postponed the decision at the request of politicians. Talks are currently being held with the municipality, the canton and the federal government in order to find a solution after all. In order to reverse the decision, a "long-term perspective for exports to the EU" is needed, according to the company boss.
Situation remains tense
However, even after the closure of the profile route, the situation remains tense. Imports from the EU to Switzerland are still possible without restriction, which is leading to a massive price war. As a result, margins are also under pressure.
It is not clear from the press release how many employees are affected by the closure. A social plan is to be drawn up for the employees affected by the redundancies. In addition, wherever possible, the redundancies will be made through natural departures, the statement continues. According to the website, the company currently employs around 540 people.
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