By Foo Yun Chee and Christoph Steitz
BRUSSELS/FRANKFURT (Reuters) -Thyssenkrupp is set to secure EU approval for 2 billion euros ($2.3 billion) of German state subsidies for its proposed green steel plant in Duisburg, people with direct knowledge of the matter said on Tuesday.
The European Commission’s decision could come as early as Thursday or next week, but the timing could slip because the competition regulator is still finalising the document, the people said.
Companies across Europe have turned to governments for hefty subsidies to build green production facilities as the European Union seeks to catch up in the green tech race and to counter massive aid handed out by the U.S. and China to their businesses.
Thyssenkrupp declined to comment, referring enquiries to the EU Commission and the federal government involved in the proceedings. A spokesperson for Germany’s Economy Ministry said it was in “very good talks” with the European Commission.
In e-mailed comments, the Commission said it was in close and constructive discussions with Berlin over the aid for Thyssenkrupp, and that good progress had been made recently, declining to be more specific.
A source within the Germany Economy Ministry said last month that the Commission was expected to approve the government grant, which underpins Berlin’s efforts to keep its local steel industry competitive.
Thyssenkrupp requires financial support for the so-called direct reduction iron (DRI) plant, which is vital to cutting CO2 emissions during the production of steel, one of the most polluting industrial manufacturing processes.
The DRI site is due to start operation at the end of 2026 and forms the centre of Thyssenkrupp’s effort to decarbonise production at its steel division, which is currently looking for a strategic partner.
($1 = 0.8890 euros)
(Reporting by Foo Yun Chee in Brussels and Christoph Steitz in Frankfurt; Editing by Jan Harvey)
