Eastern German Steel Mill to Close

BERLIN — The giant Krupp company announced Wednesday that it will close a money-losing steel mill in eastern Germany, a move likely to heighten tensions during a spreading metalworkers strike in the former Communist region.

More than 30,000 workers have joined the strike to demand that employers bring their pay in line with western German levels. IG Metall, the country’s largest union, said it ordered thousands more people to join picket lines today.

Talks stalled late Tuesday. Another bargaining session was set for today in the northern city of Rostock.

Analysts have warned that eastern Germany’s first major walkout in six decades could seriously damage the region’s struggling economy.

Juergen Harnisch, the chairman of Krupp, said it would close its money-losing Oranienburg works near Berlin on June 30. Harnisch said Krupp hopes to find jobs elsewhere in the company for the mill’s 285 employees.