DUISBURG, Germany (Reuters) - German Economy Minister Robert Habeck on Wednesday said he would do whatever it takes to preserve the country's steel industry by helping to decarbonise its production processes, throwing his weight behind the sector after weeks of doubts.
"I will do everything I can to ensure that the steel industry in Germany is being sustained in all locations," Habeck told Thyssenkrupp (ETR:TKAG) steel workers in Duisburg, adding this would require the industry to become green.
About 12,000 steel workers gathered at Thyssenkrupp's steel headquarters in Duisburg, staging protests against what they fear is a lack of commitment from Berlin to help fund the steel sector's shift towards carbon-free production.
Talks between Berlin and Brussels over 2 billion euros ($2.17 billion) in subsidies for a green steel plant Thyssenkrupp plans to build have picked up pace, with approval by the European Commission expected soon.
Thyssenkrupp shares were up 2% following Habeck's comments.
Juergen Kerner, Thyssenkrupp's deputy supervisory board chairman and a leading labour figure, said there had to be clarity within weeks, while Habeck promised a formal agreement in the summer.
Labour leaders had threatened that Thyssenkrupp's investment decision for the green steel site could be revoked at a supervisory board meeting scheduled for June 23 unless firm subsidy commitments were made.
Thyssenkrupp Steel Europe said that some issues remained, adding non-binding commitments had to be turned into a legally binding framework within the next week, adding the company continued to be in talks with all relevant authorities.
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