Salzgitter invests hundreds of millions of euros in new furnace and heat recovery

German steelmaker Salzgitter is investing heavily in the modernization of its flat steel production. This is a project by Salzgitter’s subsidiary, Salzgitter Flachstahl GmbH, which will invest hundreds of millions of euros in a new walking beam furnace and a waste gas heat recovery system at the hot strip mill.

The new furnace will be used to heat steel slabs to a temperature of around 1300°C, a necessary step before rolling them into coils. The new equipment will reduce energy consumption by 30% during this process. The furnace will be manufactured by Tenova Italimpianti, an Italian company.

“The new furnace will significantly reduce our energy costs and carbon footprint. Once it is commissioned, all slabs at the Salzgitter site will be processed using walking beam furnaces,” said Thomas Rautscheck, Director of Flat Products.

An important component of the project is a system for utilizing heat from hot flue gases, which will convert their energy into steam. This steam will be used in other processes at the plant. The system is being installed by DSD Power.

The project received government support due to its high level of energy efficiency. Installation and commissioning will take several years. The project is scheduled to be completed in 2028.

As GMK Center reported earlier, in early February 2025, Salzgitter began construction of one of Europe’s largest green hydrogen plants. Starting in 2026, the Salzgitter facility is expected to produce about 9,000 tons of hydrogen annually, which will be a key milestone in the implementation of the SALCOS® (Salzgitter Low CO2 Steelmaking) program to reduce CO2 emissions in steel production.