Major German steel mills are reportedly forced to scale back production due to the unreliability of the Deutsche Bahn railway system. According to reports from the “Süddeutsche Zeitung”, construction work on crucial rail lines across Northern Germany is severely disrupting the delivery of materials to these facilities via freight trains.
Salzgitter AG, one of Germany’s third-largest steel manufacturers in Lower Saxony, confirmed to the newspaper that disruptions to freight services have already necessitated a reduction in high-furnace production. Salzgitter relies on freight trains to transport key raw materials, including iron ore, coal, and scrap metal. A spokesperson for the company stated that if the situation does not improve in the near term, they will have to implement further production cuts. Currently, however, no short-term improvements have been observed. These ongoing logistical issues are causing massive costs for the corporation and are reportedly leading to “discernible economic damage” for Germany as a whole.
Arcelor-Mittal, which operates facilities in Hamburg, Bremen, and Eisenhüttenstadt, has also begun making production cuts at its plant in Brandenburg because it has not been receiving adequate supplies of iron ore.
The cause of these problems is attributed by the company to the persistent construction chaos within the North German rail network, coupled with the fact that Deutsche Bahn is not prioritizing these freight trains sufficiently. The spokesperson further criticized the state-owned railway system for not having an adequate grasp of the situation or a clear plan to quickly restore stable supply chains.
