The Swiss steel industry is under severe pressure recently due to low demand from the European manufacturing sector, decreasing prices for imported products and rising energy costs. Several companies in the sector resorted to various measures in order to remain in business.
Significant Decreases in Electricity Rates
The Swiss Federal Senate approved proposed legislation that includes gradual reductions in electricity transmission grid usage fees to support the steel industry. Scheduled to come into effect on January 1, 2025, the legislation would decrease these fees by the following percentages over a four-year period. In the first year, the electricity transmission network usage fee is to be decreased by 50%, in the second year by 37.5%, in the third year by 25%, and in the fourth year by 12.5%.
Responding to İndustry Needs
Parliament's action is a direct response to the pressures encountered by the Swiss steel industry. The support plan is intended to increase the resilience of steel companies against rising energy costs and protect employment in the sector.
Analysts see Switzerland's decision as an important step towards increasing the sustainability of the sector and maintaining its global competitiveness.
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