Salzgitter has approved a restructuring that will see its steel activities recombined under the new “Steel Production” and “Steel Processing” business units from April 1, the German steelmaker said in a statement March 17.
Salzgitter said it will be divided into four segments instead of previously five, streamlining the company even further as part of its “Salzgitter AG 2030” strategy.
“With a view to the transformation already embarked on, we are repositioning our group as lean, powerful, and reflecting market and customer requirements. The subsidiaries essentially participating in our SALCOS (SAlzgitter Low CO2 Steelmaking) program are to be regrouped under the Steel Production Business Unit,” CEO Gunnar Groebler said.
The Steel Production unit will include Salzgitter Flachstahl, Peiner Trager and Deumu, and will be headed by Ulrich Grethe, who has managed the company’s strip steel unit for the past eight years.
The Steel Processing Business Unit, which will concentrate on the downstream links in the value chain and on customer processes, will include Salzgitter’s two heavy plate mills in Ilsenburg and Mülheim, as well as its steel tubes producers. Burkhard Becker will lead this business unit, in addition to his function as Salzgitter’s Chief Financial Officer.
The Technology and Trading business units will remain unchanged.
— Annalisa Villa