Stahl Gerlafingen closes a production line
Published: Wednesday, Mar 27th 2024, 14:50
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Now it's a fact: Swiss steel manufacturer Stahl Gerlafingen is closing one of its two production lines. The move was already announced in mid-March and now affects a maximum of 95 jobs, according to a press release issued on Wednesday.
The measures are unavoidable due to the "distorted competition" in the European steel market, according to the statement. The closure is intended to secure the future of the steelworks.
The closure of the production line will result in a maximum of 95 job losses. A redundancy plan has been drawn up for those directly affected. In addition, part of the reduction is to be achieved through natural fluctuation.
De facto import ban
Stahl Gerlafingen has been "effectively confronted with an EU import ban" since mid-2023. This mainly affects the export of so-called wide flat steel. According to the company, there are also "massive" support measures for the European steel industry, which are causing sales and margins for the Swiss plant to shrink.
"In addition, the now horrendous energy prices and the still record-high grid charges on energy in Switzerland compared to Europe have left Stahl Gerlafingen's balance sheet deep in the red," wrote the company, which is owned by the Italian Beltrame family.
Meanwhile, as previously announced, the steelworks itself, the Kombistrasse, the ring center and maintenance work will be largely exempt from the upcoming measures. This would protect those parts that are systemically relevant for Switzerland and that ensure the supply of strategically important steel products.
The steelworks uses domestic steel scrap to produce around 50 percent of the construction steel required in Switzerland each year. If it were to be shut down, the Swiss steel scrap would have to be transported abroad.
Relief measures come too late
The partial closure has been an issue at Stahl Gerlafingen for some time - also politically. However, the company's previous appeals for help to the federal administration as early as July 2023 have fallen on deaf ears. Just under two weeks ago, Economics Minister Guy Parmelin stated on Swiss radio SRF that he did not consider the Swiss steel industry to be systemically relevant.
Over the past week, politicians have been intensively involved in the search for solutions for the steelworks, explained company boss Alain Creteur in the press release: "We were very positively surprised and would like to express our sincere thanks for this support."
Ultimately, however, the measures promised by politicians would only come into effect in the future and therefore too late to keep the Profilstrasse in operation. "In view of the overall situation, there is no alternative to measures such as the closure of Profilstrasse if we want to safeguard the remaining jobs," said Creteur.
©Keystone/SDA
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