Salzgitter sells SZBE steel components business to FALK Bouwsystemen

German steelmaker Salzgitter has sold its steel components business Salzgitter Bauelemente, or SZBE, to Netherlands-based FALK Bouwsystemen, it said Dec. 8.

The companies chose to not disclose the purchase price, but said FALK would take the business over from Jan. 1, 2023.

Salzgitter would retain its site on the steelworks premises and Salzgitter Flachstahl would continue to supply feedstock to SZBE, it said.

The sale was in line with the Salzgitter 2030 strategy, under which the company should achieve more active portfolio management, Salzgitter CEO Gunnar Groebler said.

“FALK’s takeover opens up considerably better strategic options for growth for SZBE and its employees compared with the former corporate group,” he said.

Meanwhile, FALK, which is focused on the construction of buildings in industry and agriculture, would use the acquisition to enter the German market, it said.

“To this end, we will be building on the existing know-how and endeavoring to expand the production volume at this location; similarly, the investment measures envisaged by management are to be progressed,” the FALK Group said.

“In the new corporate group, Salzgitter Bauelemente will benefit from greater visibility than before, which is also a reason for our positive assessment of the new arrangement,” SZBE General Manager Kai Bohmbach said, adding that the potential for cooperating in procuring material was also advantageous.

FALK has a production volume in the sandwich elements segment totalling 5 million sq.m, which Salzgitter said was around five times higher than Salzgitter Bauelemente’s volume, Salzgitter said.

It also recycles sandwich elements, reducing its environmental impact by around 40%, while SZBE manufactures sandwich elements from mineral wool to accommodate customers’ fire protection requirements.

Low-carbon steel supply accord with EMW

Salzgitter Group has also announced that its subsidiary Salzgitter Flachstahl GmbH has concluded an agreement with EMW Stahl Service GmbH to supply the steel service center – which intends to increase its sales of green steel products in the coming years – with a specified quantity of “green” steel.

An initial delivery will be made following the steelmaker’s successful conversion to low CO2 steel production under its “SALCOS – Salzgitter Low CO2 Steelmaking” transformation program, it said, without specifying quantities.

As from the end of 2025, the Salzgitter Group will gradually convert its steel production to hydrogen-based processes. The goal is to achieve virtually CO2-free production as from 2033.

EMW Stahl Service, one of Germany’s largest independent steel service centers, said the agreement with Salzgitter, an existing partner, “represents an important step for us in expanding our product portfolio in the area of CO2-reduced steel…… this is another building block towards achieving greater sustainability.” EMW’s parent group Schäfer Werke Group, aims to achieve climate neutrality by 2030.

This is one of a series of green steel supply agreements announced by Salzgitter this year.

— Jacqueline Holman, Diana Kinch