Switzerland parliament has agreed to provide aid in a bid to help the struggling domestic steel industry, according to media reports.
The Switzerland steel industry has been under pressure for a while due to a downturn in demand from the European manufacturing sectors, as well as cheaper imports and high energy costs. Several companies have been working on some measures to maintain their operations. In particular, as SteelOrbis reported last month, Swiss Steel will cut hundreds of jobs amid weaker European market. Also, in May this year, Stahl Gerlafingen, a part of Italian merchant bar producer Beltrame Group, had decided to shut down one of its production lines due to financial losses, though later it postponed this decision with the possibility of a government aid.
Taking into account these, the council of states has voted in favor of a law that will exempt steel companies from taxes for the use of the electricity transmission network for four years. Within the scope of the law, which is scheduled to come into effect as of January 1, 2025, taxes can be reduced by 50 percent in the first year, 37.5 percent in the second year, 25 percent in the third year and 12.5 percent in the fourth year.