Swiss steelmaker Stahl Gerlafingen has announced plans to lay off an additional 120 employees, as reported by Swiss unions Syna and Unia. This latest decision follows previous job cuts when the company closed its production line for merchant bar and sections earlier this year. The layoffs have raised concerns about the mill's crucial role in Switzerland’s circular economy, where it is recognized as a significant scrap-based producer. Unions are now urging policymakers to mandate the use of low-emission steels in the construction sector, criticizing construction authorities for only issuing recommendations rather than enforceable requirements.
Stahl Gerlafingen, owned by Italy's Beltrame group, has been struggling with unfavorable production conditions, primarily due to soaring energy costs in Switzerland. In an interview with the Swiss daily Neue Zürcher Zeitung, Antonio Beltrame, the head of the group, confirmed the redundancy plans but expressed his desire to retain the facility. He highlighted that last year, extreme fluctuations in power prices led to substantial financial losses for the company, contrasting with lower energy costs experienced by steelmakers in neighboring countries like France and Italy.
The steelmaker's difficulties are emblematic of broader challenges facing the Swiss steel industry, which has been grappling with high operating costs and stiff competition from other European nations. Despite the importance of Stahl Gerlafingen in the local economy and its contributions to sustainable practices through recycling steel, the company has not received adequate political support to navigate these challenges. While various political factions have proposed measures to assist the steelmaker, no concrete actions have been taken thus far.
The unions, representing the affected workers, stress the necessity of protecting jobs at Stahl Gerlafingen, emphasizing the potential impact on the local economy and the environment. They argue that reducing emissions and promoting the use of recycled materials are vital for the sustainability of the construction industry. Yet, the absence of stringent regulations on low-emission steel usage hampers progress in this area.
As the situation unfolds, the steel industry in Switzerland faces critical decisions that could determine its future viability. With the looming threat of further layoffs and ongoing financial strain, stakeholders must advocate for policies that can enhance the competitiveness of local producers.
