Reuters reports that thyssenkrupp's steel division has raised concerns about the escalating costs of its ambitious carbon-free steel production project. The German industrial giant's steel unit, thyssenkrupp Steel Europe, announced on Thursday that the planned direct reduction site, initially projected to cost around €3 billion, might exceed previous financial estimates.
The project, a cornerstone of thyssenkrupp's strategy to transition towards greener steel production, is currently slated to begin operations in 2027. However, TKSE's recent statement suggests that this timeline might be subject to change. The company's management board has informed its parent company, thyssenkrupp AG, about potential risks and the resulting possibility of cost increases in constructing the direct reduction plant at the Duisburg site.
This revelation comes at a critical juncture for Thyssenkrupp, as the company's supervisory board convenes for a scheduled meeting. The timing is particularly noteworthy, as this marks the first such gathering since the resignation of TKSE's leadership at the end of August, an event that has been widely interpreted as a sign of escalating crisis within the German industrial icon.
