OREANDA-NEWS. May 03, 2013. The Prime Minister of North Rhine Westphalia, Hannelore Kraft, visited ArcelorMittal’s site in Duisburg to visit the new wire rod mill.  ArcelorMittal has created the world’s most cutting-edge wire production line in Duisburg, located in the middle of Germany's largest federal county (Bundesland). She also took the opportunity to discuss current economic and political topics with Group Management Board member Michel Wurth and Frank Schulz, CEO of ArcelorMittal Germany.

The new rolling mill in Ruhrort is testimony to ArcelorMittal’s commitment to the Duisburg site. This investment of more than EUR130m will enable a significant reduction in energy costs, increase the plant’s productivity and support jobs and training positions. The Duisburg plant supplies semi-finished products for forging in addition to high-strength and ultra-high-strength wire rods for the car industry and renewable energy sector, including offshore wind turbines.

Michel Wurth, GMB member for Long Carbon Worldwide, explains: “Germany is an important location for the manufacture of products with high value creation. The new wire rod mill will make a significant contribution to us being able to retain and expand our leading market position. We therefore appeal to the public authorities in Germany and Europe to support the industry and strengthen its competitiveness.”

ArcelorMittal employs state-of-the-art energy management systems at all its German production sites and produces steel efficiently and sustainably - for instance, by partially generating its own electricity. As an energy-intensive company, however, ArcelorMittal relies on huge quantities of electricity which have to be bought in. The high electricity prices in Germany therefore threaten the competitiveness of the industry and the future of the Duisburg plant.

In 2012, ArcelorMittal Duisburg - in spite of exemptions as an energy-intensive company – had to make contributions of just under €8m under the provisions of the Renewable Energy Sources Act. This equals a multiple of the profit before taxes (Ebitda) in Duisburg. Compared to 2012, electricity prices for the site have increased year by 34 percent. If the exemption provision in the Renewable Energy Sources Act were to cease to apply, this would mean potential additional costs of EUR 14.5m.

ArcelorMittal Germany’s CEO Frank Schulz stresses: "The preservation of industrial competitiveness is a basic element so that the energy transition in Germany is successful. More planning security and increased sustainability for the energy and climate policy are as necessary as avoiding additional burdens for the industry which is exposed to international competition. This is to ensure that Germany as an industrial location has a future."