SALZGITTER (dpa-AFX) — Despite ArcelorMittal's recent decision to halt its transformation toward green steel, steel producer Salzgitter AG is pressing ahead with its own plans. "The implementation of the first stage of the transformation is already well advanced and continues as scheduled," a company spokesperson told the German Press Agency dpa upon request. At the same time, she called for improved framework conditions.
The Salzgitter spokesperson described ArcelorMittal's decision to put its restructuring plans in Bremen and Eisenhüttenstadt on hold as "a clear signal that the conditions for transformation projects need to be improved." She emphasized the importance of ramping up the hydrogen economy and lowering electricity prices "to a competitive level."
ArcelorMittal Puts German Conversion on Ice
On Thursday, steel giant ArcelorMittal announced it was suspending its green steel plans in Germany for the time being, halting its decarbonization projects at flat steel plants in Bremen and Eisenhüttenstadt. The company explained that it could not continue investments due to market conditions and the lack of economic viability for CO2-reduced steel production. The government had already approved €1.3 billion in funding for ArcelorMittal's planned projects.
In contrast to ArcelorMittal, Salzgitter's transformation has been underway since the end of 2023. The first facility is slated to go online in 2027, and the company is sticking to that timeline, the spokesperson stressed. Germany's third-largest steel producer is currently investing more than €2 billion in the initiative, with €1 billion coming from federal and state governments. By 2033, the company aims to fully transition to green steel, gradually replacing its three coal-fired blast furnaces with plants that will initially run on natural gas and later on green hydrogen.
Salzgitter Ramp-Up Faces Minor Delay
Salzgitter CEO Gunnar Groebler reiterated at the annual general meeting in May that the company remains committed to its goals. However, the ramp-up has been delayed slightly: instead of launching by the end of 2026, the new facility is now expected to deliver green steel in the first half of 2027. Groebler cited construction delays on the electric arc furnace as the reason.
Groebler, who also serves as president of the German Steel Federation, has repeatedly called for better framework conditions for green steel. The industry, he said, needs competitive electricity prices and large quantities of hydrogen for the new technology. "This is where policymakers need to step up," he emphasized./fjo/DP/jha
