German steelmaker Salzgitter AG continues to optimize its business portfolio. The company’s subsidiary Salzgitter Mannesmann Stahlhandel GmbH has announced the sale of Salzgitter Mannesmann Stahlhandel Austria to ECCO Group. The agreement provides for the transfer of all operating assets and divisions, including the company’s two sites in Graz and Gratkorn (Austria), according to a press release.
Salzgitter Mannesmann Stahlhandel Austria was founded in 2012 after the acquisition of part of the assets of Kovac Stahl. The company, with an annual turnover of about €60 million and 84 employees, specializes in steel trading, particularly in the steel processing segment.
ECCO Group is known for its specialization in acquiring and developing standalone businesses. The deal is aimed at ensuring the sustainable development of the Austrian company in its new status as an independent player. Management will remain in the hands of the current team, which guarantees stability for employees, customers and partners.
ECCO emphasizes its intention to maintain production ties with Salzgitter’s enterprises and develop business in the region.
“We see considerable potential, especially in the steel processing business,” said Daniel Ebert, Managing Partner of ECCO Group.
According to Sebastian Bross, Chairman of the Board of Salzgitter Mannesmann Stahlhandel GmbH, the sale of the Austrian asset is part of the strategic transformation of the metal trader in response to the difficult market environment. He also emphasized the importance of maintaining trust and stability for staff and partners in Austria.
Financial details of the deal were not disclosed. The transaction is still subject to antitrust approval.
As GMK Center reported earlier, Salzgitter AG exceeded market expectations in terms of EBITDA in 2024, reaching €445 million. Despite a decline in total turnover to €10.0 billion (versus €10.8 billion in 2023) and a significant pre-tax loss of €296 million, the company’s profitability by this key indicator was higher than forecast.
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