Latest news with #Groebler
Yahoo
02-06-2025
- Business
- Yahoo
Trump tariffs deals major blow to European steelmakers, Salzgitter CEO warns
By Tom Käckenhoff and Christoph Steitz DUESSELDORF/FRANKFURT (Reuters) -Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the sector's most important export market. "The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany," Salzgitter CEO Gunnar Groebler said in a statement. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. Asian steel has been flooding the European market for years and the fear of that trend intensifying due to the U.S. tariffs has been the biggest headache for Europe's sector, in addition to high energy prices. In response to those fears, the EU on April 1 tightened steel import quotas to reduce inflows by a further 15% as part of its so-called European Steel and Metals Action Plan. Shares in Salzgitter fell along with larger European peers Thyssenkrupp and ArcelorMittal, all down between 0.6 and 1.8%. Just 4.5% of Salzgitter's sales come from its U.S. business, with its non-steel technology division accounting for half of that. Thyssenkrupp has previously said that the United States accounts for less than 5% of its steel exports. Thyssenkrupp did not immediately respond to a request for comment. "An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan," Groebler said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Recorder
02-06-2025
- Business
- Business Recorder
European industry hit hard by Trump tariffs, Salzgitter CEO warns
DUESSELDORF/FRANKFURT: Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. 'The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany,' Salzgitter CEO Gunnar Groebler said in a written statement. Shares in Salzgitter fell along with larger European peers Thyssenkrupp and ArcelorMittal , all down between 0.5 and 2.1%. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. Steelmakers in South Korea, Vietnam tumble on Trump's new tariffs According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the most important export market. 'An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan,' Groebler said.
Reuters
21-03-2025
- Business
- Reuters
Salzgitter says future of steel joint venture with Thyssenkrupp is uncertain
March 21 (Reuters) - German steel producer Salzgitter ( opens new tab said on Friday it was too early to tell if its HKM joint venture with Thyssenkrupp ( opens new tab and Vallourec ( opens new tab would be closed, after a potential buyer dropped out in February. Previously, German conglomerate Thyssenkrupp said HKM would have to be shuttered if no buyer is found. here. "We are aware of Thyssenkrupp's thinking. That might be one scenario, but I think it's too early to say that is the future of HKM," Salzgitter CEO Gunnar Groebler said in a press conference to discuss full-year results on Friday. If HKM were to close, a solution would have to be found as to where the material it produces would come from in future, Groebler added. Salzgitter, which holds 30% of HKM, with Thyssenkrupp holding 50% and Vallourec 20%, in February said that no solution had been found to meet the interests of all stakeholders, including the stable continued supply of input material by HKM.
Reuters
21-03-2025
- Business
- Reuters
Steelmaker Salzgitter aims to expand its defence business
DUESSELDORF, March 21 (Reuters) - German steel group Salzgitter ( opens new tab wants to expand its business catering to the defence industry, its CEO Gunnar Groebler told Reuters on Friday. "We're broadly positioned with tempered sheet metals for the defence industry," Groebler said. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. Salzgitter also produces steel pipes used in the defence industry, he added. Germany's second largest steel producer is currently building an in-house defence task force, which would help it to position itself in the segment, its CEO said. The company is also in the process of obtaining further licensing agreements with the German defence forces, Groebler said during a press conference. Europe has come under increasing pressure to up its defence spending amid increasing hostility from Russia and threats from the U.S. to pull its support from NATO.
Yahoo
10-02-2025
- Business
- Yahoo
Looming US tariffs spark concern from German steel sector, leaders
Representatives of Germany's steel industry and the government in Berlin sounded the alarm on Monday after US President Donald Trump suggested 25% tariffs on steel and aluminium imports would soon come into force. The German government is concerned about the possible effects of Trump's plans on Germany's export-oriented economy, a spokesman for the Economy Ministry told journalists. Gunnar Groebler, president of the German Steel Association, meanwhile said Trump's announcement is hitting the EU's steel sector at the worst possible time and called on the bloc to act "in a united, planned and rapid manner." The US is the most important market for the EU steel industry, according to the association, with around 4 million tons exported across the Atlantic in 2023. Germany alone exports some 1 million tons of mostly special steels to the US each year, it said. When the Trump administration imposed punitive tariffs on the EU during his first term in office, EU exports to the US plunged from 5.2 million tons in 2018 to 2.5 million tons in 2020, according to the association. 'We are familiar with this scenario' The EU and Berlin continue to work to prevent the 25% tariffs, the Economy Ministry spokesman said in Berlin. "We are familiar with this scenario from President Trump's first term in office," said the spokesman, adding that preparations have been made in case the tariffs do come into effect. During his first term in office from 2017 to 2021, the Trump administration also imposed tariffs on steel and aluminium from the EU. The bloc responded with retaliatory tariffs on US products such as jeans, bourbon whisky, motorcycles and peanut butter. The spokesman noted that the EU had eventually managed to come to an agreement with Trump then, which led to a suspension of the tariffs. When asked whether US products such as motorcycles or whisky could be hit again this time, the spokesman said that there was no automatic response based on last time's experience. Government spokesman Steffen Hebestreit said that "it would be unwise at this point to say exactly what is planned," noting that the EU is responsible for trade issues. Sector already under pressure The industry association's Groebler called for EU safeguards to be adapted quickly to protect the steel industry in the bloc. "The steel tariffs announced by the US will lead to volume diversions to Europe, further increasing the existing import pressure from overcapacity in China," Groebler, chief executive of steelmaker Salzgitter, said. The association also called on the EU to continue talks with Washington on the Global Arrangement on Sustainable Steel and Aluminium, a proposed trade agreement to fight carbon intensity and global overcapacity in the sector. According to the association, talks on such a deal had been held under the Biden administration, but no agreement has been reached so far. Not everyone fazed Meanhwile, not everyone in the industry shares the concerns, with German steel giant Thyssenkrupp saying the planned US tariffs would have only a "very limited impact" on its business. "The main market for Thyssenkrupp's steel is Europe," the company said on Monday. "The announced tariffs on imports to the US would only have a very limited impact on Thyssenkrupp's business based on the current state of knowledge," it added. Thyssenkrupp's steel subsidiary is Germany's largest producer of the material, with a large site in the western city of Duisburg. The share of steel being exported to the US is "negligible and mainly relates to high-quality products with a good market position," the Essen-based company said. The majority of the Thyssenkrupp's turnover in the United States comes from trading and its automotive supply division. "Much of the production for US customers takes place within the US," the company said. It added that a reliable assessment of the suggested tariffs could only be made once the specific tariffs had come into force and the EU's possible countermeasures were also known.
