Thyssenkrupp’s green steel plant, worth $3.3 billion, could become more expensive

Thyssenkrupp’s steel division said on Thursday that a direct reduction plant planned to produce carbon-free, steel could cost more than originally thought. The site is expected to cost approximately 3 billion euros ($3.3billion).

Thyssenkrupp Steel Europe, Thyssenkrupp’s steel unit where Czech billionaire Daniel Kretinsky holds a 20% stake in the company, has said that it is currently assuming that the plant will start operating in 2027.

TKSE stated that its management board informed its parent Thyssenkrupp "about potential risks and resulting cost increases in construction of the Direct Reduction Plant at the Duisburg Site".

Thyssenkrupp AG supervisory board is meeting for the first time since the TKSE leadership resigned in August, amid what many see as a escalating crisis within the German industrial icon.

According to current plans, the German government as well as the North Rhine-Westphalia region where Thyssenkrupp has its headquarters will cover two-thirds of the funding for the plant. The company will cover the remainder. $1 = 0.9074 Euros (Reporting and writing by Tom Kaeckenhoff, Editing by Matthias Williams and Rachel More).

(source: Reuters)