Published by Global Banking and Finance Review
Posted on December 11, 2025
Last updated: January 7, 2026
By Christoph Steitz and Tom Käckenhoff
FRANKFURT/DUESSELDORF, Dec 11 (Reuters) - Thyssenkrupp's steel unit said it will temporarily shut down production of electrical steel in Europe, a key material used in wind turbines and power grids, blaming cheap imports from Asia that it warns are putting an additional 1,200 jobs at risk.
The move, previously unreported, highlights the struggles of Europe's steel sector in the face of global trade frictions that have caused Chinese rivals to sell excess capacity on the continent, undercutting them by as much as a quarter, according to industry sources.
Thyssenkrupp Steel Europe (TKSE), Europe's second-largest steelmaker, is already cutting or outsourcing 11,000 jobs in response to the crisis, as talks about a sale to India's Jindal Steel International are entering a critical stage.
A further 1,200 job cuts would lift the total cuts to about 45% of TKSE's workforce from 40%.
TKSE will close its electrical steel plants in Germany and France from mid-December until the end of the year, the company said, adding its Isbergues site in France would be operating at half its capacity from January for at least four months.
"Grain-oriented electrical steel is indispensable for Europe's energy infrastructure and the energy transition," TKSE CEO Marie Jaroni said.
"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."
Imports of grain-oriented electrical steel (GOES), which is currently not covered by EU plans to cut tariff-free steel import quotas by almost half and impose a 50% duty for excess shipments, have tripled over the past three years, according to Eurostat data.
So far in 2025, imports of GOES have increased by around 50%, the data shows, a direct consequence of stiffer U.S. steel tariffs that have diverted supplies to Europe, a trend also seen in other industries.
Along with Poland's Stalprodukt SA, TKSE is one of the last remaining European players producing the material, with China's Baowu, South Korea's POSCO and Nippon Steel among the biggest exporters to Europe.
(Reporting by Christoph Steitz and Tom Kaeckenhoff;Editing by Elaine Hardcastle)
Electrical steel is a type of steel that is specifically designed for use in electrical applications, such as transformers and motors, due to its magnetic properties.
Job cuts refer to the reduction of employees in a company, often due to financial constraints or restructuring efforts, which can lead to layoffs.
Market protection refers to measures taken to safeguard domestic industries from foreign competition, often through tariffs or quotas.
Grain-oriented electrical steel is a type of electrical steel that has been processed to have a specific grain structure, enhancing its magnetic properties for efficient energy use.
The energy transition refers to the global shift from fossil fuels to renewable energy sources, aimed at reducing carbon emissions and promoting sustainability.
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