How is Import Pressure Causing Shutdown for thyssenkrupp?

German steelmaker thyssenkrupp is undergoing a period of production cuts in France, putting thousands of jobs at risk.

Due to an increase in steel imports to the European market, domestic production is being pushed aside, removing the need for high production.

The company has been facing pressure over the last 12 months, with an inability to stabilise European production.

An ongoing issue

Global trade has been undergoing a significantly turbulent period, with companies and governments around the world making alterations to their sourcing strategies. Trade tensions have meant that core commodities, like steel, have been used as a tool to redevelop supply chain relationships. 

Ongoing oversupply from China has pushed out UK steelmakers from their own domestic production, meaning that the UK steel industry has faced financial troubles and operational shutdowns. This is now being echoed across Europe, with German steelmaker thyssenkrupp cutting production. 

thyssenkrupp is an international industrial and technology group, working across automotive technology, decarbonisation technologies, material services, steel and marine systems. thyssenkrupp Steel Europe (TKSE) implements innovations in steel for a range of applications, working across customer-specific materials solutions and materials-related services.

thyssenkrupp Electrical Steel is one of Europe's two producers of grain-oriented electrical steel, a vital material for transmitting electricity from power plants to the household outlet. It is an important feature of the energy transition, making European production of it vital to the region's strategic autonomy.

However, increasing imports have lessened European production, resulting in a destabilised European supply chain and increasing job instability.

Since January, its Isbergues site in Northern France has been operating at half capacity, due to a lessened demand for European made steel. In December 2025, it was announced the company would temporarily shut down production of electrical steel in Europe – which is used in wind turbines and power grids.

This was because imports from Asia were cheaper and were being increasingly purchased for manufacturing.

"Grain-oriented electrical steel is indispensable for Europe's energy infrastructure and the energy transition," TKSE CEO Marie Jaroni said at the time.

"We are strongly committed to maintaining production in Europe and are currently working to ensure effective market protection in order to guarantee fair competition for this strategically important product."

At the time, the plant was going to be operating at 50% capacity for at least four months. Now, this is being extended as the company experiences further struggles.

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Company update

Now, thyssenkrupp Electrical Steel has announced extended cuts at its Isbergues site, pointing towards a worsening import crisis for grain-oriented electric steel. The company has announced total closure for the Isbergues site from June to September.

“In view of the ruinous flood of imports in the market for grain-oriented electrical steel, we see no alternative but to temporarily shut down our French site once again," says Angelo di Martino, CEO of thyssenkrupp Electrical Steel.

"This measure is necessary to stabilise our company amid further deterioration in order intake. We are faced with import prices that in some cases lie well below production costs in the EU. We therefore urgently need appropriate trade protection to establish fair competitive conditions for this strategically important product.

"This also concerns around 1,200 skilled jobs, which we aim to safeguard at our sites in Gelsenkirchen and Isbergues. We are engaged in intensive and constructive dialogue with the European Commission and hope for the prompt introduction of effective safeguards. Currently, there is no effective protection. At the same time, we are doing everything within our control to strengthen our competitiveness.”

Grain-oriented electrical steel is crucial for the production of energy-efficient transformers and large, high-performance generators. Despite this, the European market is under significant pressure, as a result of increases in import volumes of cheaper materials. This imports are coming in, unchecked, at prices largely below EU production costs, making them a cheap alternative.

Imports have tripled since 2022, with a further increase of 50% in 2025 – now, it is estimated that more than 50% of the European market comes from imports. As a result, order volumes at European production facilities have decreased dramatically, with major utilisation of European facilities.

Despite this, global demand for grain-oriented electrical steel is set to triple by 2050, but if cheaper options remain available, European firms may not see the benefit.