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BUSINESS

Germans back limits for CEO salaries

More than two thirds of all Germans support putting legal limits on what business executives earn, according to a new survey.

Some 68 percent of those asked by pollster TNS Emnid were for a ceiling on salaries for well-paid managers, whereas only 29 percent were opposed. In former communist eastern Germany a whopping 77 percent backed capping what corporate fat cats make.

The survey, published in the Bild am Sonntag newspaper, comes amid a political debate in Germany whether the government should try put prohibitive taxes on high salaries to discourage widening income disparity.

The centre-left Social Democrats, junior coalition partners to Chancellor Angela Merkel’s conservative Christian Democrats, last week mooted the possibility of limiting how much of top executive salaries could be written off a company’s tax bill. But not only the conservatives are sceptical of artificial salary caps.

“These silly tax write-off limits won’t solve the problem,” Michael Adams, a corporate law expert from the University of Hamburg, told the Berliner Morgenpost newspaper. “Such a system wouldn’t have helped one bit in the most spectacular cases of manager enrichment.”

ENVIRONMENT

Sweden’s SSAB to build €4.5bn green steel plant in Luleå 

The Swedish steel giant SSAB has announced plans to build a new steel plant in Luleå for 52 billion kronor (€4.5 billion), with the new plant expected to produce 2.5 million tons of steel a year from 2028.

Sweden's SSAB to build €4.5bn green steel plant in Luleå 

“The transformation of Luleå is a major step on our journey to fossil-free steel production,” the company’s chief executive, Martin Lindqvist, said in a press release. “We will remove seven percent of Sweden’s carbon dioxide emissions, strengthen our competitiveness and secure jobs with the most cost-effective and sustainable sheet metal production in Europe.”

The new mini-mill, which is expected to start production at the end of 2028 and to hit full capacity in 2029, will include two electric arc furnaces, advanced secondary metallurgy, a direct strip rolling mill to produce SSABs specialty products, and a cold rolling complex to develop premium products for the transport industry.

It will be fed partly from hydrogen reduced iron ore produced at the HYBRIT joint venture in Gälliväre and partly with scrap steel. The company hopes to receive its environemntal permits by the end of 2024.

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The announcement comes just one week after SSAB revealed that it was seeking $500m in funding from the US government to develop a second HYBRIT manufacturing facility, using green hydrogen instead of fossil fuels to produce direct reduced iron and steel.

The company said it also hoped to expand capacity at SSAB’s steel mill in Montpelier, Iowa. 

The two new investment announcements strengthen the company’s claim to be the global pioneer in fossil-free steel.

It produced the world’s first sponge iron made with hydrogen instead of coke at its Hybrit pilot plant in Luleå in 2021. Gälliväre was chosen that same year as the site for the world’s first industrial scale plant using the technology. 

In 2023, SSAB announced it would transform its steel mill in Oxelösund to fossil-free production.

The company’s Raahe mill in Finland, which currently has new most advanced equipment, will be the last of the company’s big plants to shift away from blast furnaces. 

The steel industry currently produces 7 percent of the world’s carbon dioxide emissions, and shifting to hydrogen reduced steel and closing blast furnaces will reduce Sweden’s carbon emissions by 10 per cent and Finland’s by 7 per cent.

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