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BUSINESS

Watchdog: 500 products cost more for less

A German consumer watchdog has put together a “blacklist” of 500 products on sale, the contents of which have been systematically reduced while their prices have not, it was reported on Tuesday.

Watchdog: 500 products cost more for less
Photo: DPA

Drawn up by the Hamburg Consumer Association and seen by the Süddeutsche Zeitung daily newspaper, the list features well-known brands such as Pampers and Pringles.

Leading diaper company Pampers has reduced the number of disposable nappies in its standard packet four times since 2006. The latest reduction brought the number down to 34 from 37 but the price stayed the same.

“If Procter & Gamble [the US-based company that manufacturers the product] continues in this manner, the packet will be empty in 20 years’ time,” said Armin Valet from the association.

Major brands are particularly guilty of employing such tactics, which critics describe as “hidden price hikes.” Other offending items include washing-up liquid, dishwasher tablets, crisps, sweets and dog food.

The principle is simple: manufacturers reduce contents while keeping the packaging the same or very similar. Consumers often don’t notice the change and go on buying the products in the belief that they’re getting the same as before.

In some cases, prices in real terms have risen by up to 60 percent as a result of the tactics. To put that in context: inflation has only risen by 12 percent in the past seven years.

But there are limits to what consumers will accept. “Manufacturers can’t take this to endless heights,” said Cologne-based management consultant Ulrich Eggert, adding that consumers would not buy products unless they met a certain standard.

Other manufacturers have in fact increased their contents while upping their prices disproportionately. A tube of Pringles now contains 190 grams of crisps, up from 165 grams. However the price per 100 grams has risen by almost a third (from €0.96 to €1.26).

Similarly, dog food brand Frolic are charging almost €0.10 more per 100 grams than before it increased its standard quantity.

Manufactures often justify price hikes by pointing to other improvements, say experts. “Bigger quantities, better quality and a nicer appearance are intended to distract from the price rises,” Eggert told the Süddeutsche Zeitung.

Pampers boasted “product improvements” including the “urine indicator” in the New Baby range, which the company says required “significant investment.” Dishwasher tablet manufacturer Henkel also justified its price rises by saying that over the years their product has developed to “offer consumers better performance.”

But consumer watchdogs are warning consumers to wise up on hidden tactics which are getting them to pay more – for less.

The Local/kkf

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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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