Thyssenkrupp Electrical Steel to halt production in Germany and France

Thyssenkrupp Electrical Steel (tkES) will temporarily shut down its plants in Gelsenkirchen and Isbergues as the European grain-oriented electrical steel market comes under intense pressure from low-priced imports. The company announced that both sites will stop operating completely from mid-December until year-end. In France, the Isbergues plant will then run at only 50% capacity for at least four months from January.

The move reflects what tkES describes as a dramatic deterioration in market conditions. Imports of grain-oriented electrical steel into Europe have tripled since 2022 and rose by another 50% in 2025, with volumes from Asia priced below average EU production costs. As customers increasingly switch to lower-priced imports, European mills face severe underutilization.

Despite this, the company points to long-term demand fundamentals: global consumption of grain-oriented electrical steel is expected to triple by 2050. The material is essential for transformers in power grids, substations and wind turbines, and therefore central to Europe’s energy transition.

Marie Jaroni, CEO of thyssenkrupp Steel Europe, warned of the strategic implications: “Grain-oriented electrical steel is an indispensable element for Europe's energy infrastructure and the energy transition. We are firmly committed to maintaining production in Europe, and are currently working to ensure effective market protections. These efforts are crucial to securing fair competitive conditions for this strategically vital product and protecting approximately 1,200 high-quality jobs at our sites in Gelsenkirchen and Isbergues.”

The company argues that swift and robust EU trade protection measures are necessary to stabilize operations and lift capacity utilization back to sustainable levels. At the same time, tkES notes that downstream transformer producers are also exposed to unfair competition and must be protected as part of any EU response.

Thyssenkrupp Electrical Steel is one of only two remaining European producers of grain-oriented electrical steel, and one of the few worldwide capable of manufacturing advanced “top grades.” These high-performance steels are critical for efficient, low-loss power transmission — from large generating facilities down to distribution networks. Maintaining domestic production, the company says, is essential for Europe’s energy security and strategic autonomy.

Source: Thyssenkrupp Steel Europe, Photo: Fotolia