German metalworks’ union, IG Metall has appealed to the German government to make an investment in thyssenkrupp’s steel section, which was severely affected by the COVID-19 pandemic.
A company spokesperson said that the distressed conglomerate’s steel unit is unable to succeed independently and the union is open to the potential scope of government involvement, according to media reports.
However, the German government toned down the optimism towards a state bailout and expressed that national involvement is not the best step at this time, according to reports. Instead, it would be willing to financially back the struggling steelmaker in developing a more sustainable business model.
The German conglomerate has been negatively affected by increased raw material costs and weakening auto industry demand. The company is presently working towards finding methods to reduce costs in its steel unit beyond the formerly announced plans to condense its workforce by 3,000 employees over the next six years.