 |
| Swiss Steel |
Electricity Cost Relief Aims to Support Industry Amid Competitive Pressures
Steel and aluminum producers in Switzerland are now eligible for state subsidies to offset high electricity costs, with aid available retroactively from January 1, 2024, through the end of 2028. According to Swiss public information portal swissinfo.ch, the Swiss government has allocated CHF 37 million ($42 million) to support these industries through reduced electricity grid usage fees.
The subsidy plan will progressively decrease over four years, with fees cut by:
- 50% in the first year
- 37.5% in the second year
- 25% in the third year
- 12.5% in the fourth year
High energy costs have placed significant pressure on Swiss steelmakers, including Swiss Steel and Stahl Gerlafingen, leading to production cutbacks and job losses. The subsidy program aims to alleviate these financial burdens and improve competitiveness in the global market.
Worker Protests and Industry Response
The decision to introduce subsidies was reportedly influenced by worker protests since last autumn. In February, employees called on Swiss Steel to take advantage of the government’s support package.
However, companies must meet strict conditions to qualify. They are required to submit plans ensuring the long-term sustainability of production sites and jobs, as well as commit to new investments. Additionally, firms accepting the subsidies are prohibited from distributing variable remuneration to management and supervisory board members.
Despite the challenging financial environment, the aid package has not generated significant media attention, and industry response has been cautious. Swiss Steel, when asked for comment, stated: “We have taken note of the decree and will carefully examine if we will apply for it.”
Tags
STEEL
