Energy must be affordable

Interview with Uwe Reinecke, General Manager ESF Elbe-Stahlwerke Feralpi GmbH

Steel manufacturer invests against the trend and requests political support

In this interview, Uwe Reinecke, General Manager of FERALPI STAHL, is optimistic that the company is on the right track with its investments in the further decarbonisation of steel production and a new emission-free spooler rolling mill. However, he calls on politicians to take decisive action to make energy prices, especially grid fees, competitive again and to improve the skilled labour situation.

What makes you so sure that you are on the right way?

We are focussing on two key topics: firstly, the transformation to green steel, i.e. low-CO2 electrical steel. Secondly, the expansion of our product portfolio with a new product, the hot-rolled coil with a unit weight of approx. 2.5 to approx. 8 tonnes. This will make us the first supplier in Germany and at the same time a pioneer in terms of technological innovation.

So your offerings are now even more customised to customer needs?

Yes, we have invested a lot in our sales and corporate presence over the last two years. We work with renowned agencies and have built up a strong presence in Saxony and beyond.

However, the market for structural steel has become difficult. How are you dealing with this?

It is true that the markets in the construction industry have become more difficult in the last two years. However, we have still managed to maintain full employment in our plants and avoid short-time working.

What are the biggest challenges for FERALPI STAHL?

In addition to the transformation and the challenging market environment, the high energy costs are a major challenge. The capping of the industrial electricity price in our European neighbour France at 4 or 6 cents per kilowatt hour shows the disagreement at European level and that there is a need for action in Germany.

How is FERALPI STAHL positioning itself when it comes to the skills shortage?

The skills shortage is an ongoing issue that has been exacerbated by the retiring baby boomers and the pandemic. We need to become more international and recruit skilled labour from abroad, among other things. To this end, we are working with agencies and focussing on the increased integration of refugees. We have also greatly expanded our contacts with schools, academies and universities in order to attract young people to our industry, which is also essential for Germany as an industrial location.

What do you expect from politicians?

Politicians must ensure competitive energy prices in the short and long term and, in particular, the necessary grid expansion and modernisation in Europe. Furthermore, we need pragmatic and simple investment promotion programmes that can also be implemented by energy-intensive SMEs. This is the only way we can survive global competition and maintain our investments in green electric steel in Germany.

Thank you very much for the interview

Photos: marketSTEEL