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BUSINESS

German managers back a minimum wage law

German industry is largely in favour of a minimum wage, a new survey shows. Yet despite the opposition Social Democrats putting it high on their agenda, managers still do not trust the party with the economy.

German managers back a minimum wage law
Photo: DPA

A survey of German managers conducted for the Handelsblatt business newspaper showed 57 percent wanted a mandatory minimum wage in the country. Those in service industries were the most in favour with 61 percent saying they wanted a minimum wage.

An hourly rate of €8.88 was considered suitable, the managers told pollsters from Forsa who carried out the survey. This is more than the €8.50 an hour promised by the Social Democrats.

Only seven percent of those asked said the introduction of a minimum wage would lead to job cuts in their own company – although those in the north and east were less optimistic, with 12 percent expecting a minimum wage to cost jobs, than those in the centre and south, where just six percent had such expectations.

The social rift in Germany between rich and poor had been growing over the past decade, 59 percent of the managers agreed. Just six percent said the wealth gap had shrunk.

Yet despite a recent explicit promise by opposition Social Democrats that they would introduce a minimum wage if they won the September general election, hardly any business managers trust them with the economy.

When asked which party they would like to see implement economic reforms after the coming election, 53 percent of the managers went for Chancellor Angela Merkel’s Christian Democratic Union, while current coalition partner the Free Democratic Party got 18 percent. The Social Democrats were able to muster just two percent support, while even the Greens managed twice that with four percent.

The Local/hc

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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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