Salzgitter invests €700 million in the low-carbon steel production

The company plans to reduce emissions by 95%

Salzgitter’s supervisory board has approved funding of more than €700 million for the first phase of SALCOS low-carbon steel program development – the largest investment since the company’s listing in 1998. Eurometal reports about it with the reference to S&P Global Platts.

As a result of the record investment, Salzgitter plans to reduce CO2 emissions by 95%, or approximately 8 million tons per year, which corresponds to 1% of all carbon dioxide emissions in Germany. The company expects to conclude the first contracts with engineers for the SALCOS plant in July-September and plans to deliver the first volumes of products to customers by the end of 2025. The complete transition of the integrated steelworks in Salzgitter to low-carbon crude steel production is to be completed by 2033.

Amid this news, the company also reported record production and financial results. Thus, the company’s steel production fell by 1.1% year-on-year, to 3.34 million tons in January-June, but the company’s revenue from external sales in the first half of the year increased by 50%, to €6.6 billion against the background of record prices for rolled steel. EBITDA increased to €1.1 billion and profit after tax increased by 3.4 times, to €781 million.

As GMK Center reported earlier, the German steel company Salzgitter has intention to produce about 1 million tons of green steel by 2026. Salzgitter is going to replace the first blast furnace with direct iron reduction units and electric arc furnaces in 2025 in order to fulfill its climate commitment to produce green steel.