Swiss Steel Job Cuts: 130 Job Losses Despite State Aid

1/17/2025 2:05:48 AM

(MENAFN- Swissinfo) Lucerne-based steelmaker Swiss Steel is sticking to its restructuring plans, even with the emergency aid pledged by parliament. The company plans to cut 130 jobs at its Steeltec production site in Emmenbrücke.

This content was published on January 15, 2025 - 10:21 2 minutes Keystone-SDA

Français fr Swiss Steel maintient la suppression de 130 postes à Emmenbrücke Original Read more: Swiss Steel maintient la suppression de 130 postes à Emmenbrück

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Swiss Steel announced on Tuesday evening that the consultation process, which began in mid-November 2024, has now concluded. The goal was to explore all possible options to address the company's economic challenges and secure a sustainable future for the Emmenbrücke site in Lucerne, in central Switzerland.

At the end of the consultation process, the steelmaker decided to proceed with cutting 130 jobs. This comes despite the state aid granted by the Swiss parliament in December, aimed at reducing electricity grid costs for steel mills.

The number of planned redundancies has been cut from 80 to a maximum of 50, taking natural attrition into account. These personnel measures will be implemented in the first quarter of 2025.

The House of Representatives and the Senate passed an urgent law in Bern on December 17 to support strategically important steel companies. Four companies are affected: Stahl Gerlafingen in canton Aargau, Swiss Steel in Emmenbrücke, in canton Lucerne, and both Novelis and Constellium in canton Valais.

In practical terms, these steelworks will receive up to CHF37.4 million ($41 million) in electricity cost reductions over four years. Combined with additional benefits from canton Lucerne, this means Swiss Steel in Emmenbrücke will get CHF25 million in support over the same period, the Unia trade union said in a press release on Tuesday evening.

To qualify for this state aid, companies must apply to the energy ministry by May 31, 2025, and meet several detailed requirements.

Translated from French by DeepL/sp

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