Stahl-Holding-Saar (SHS) has announced progress in construction work on the Power4Steel project, which aims to transform steel production in Dillingen and Völklingen.
The company provided an update on the project during a visit to the Dillingen plant by German Chancellor Friedrich Merz and Saarland Minister-President Anke Rehlinger. The visit also included a presentation of Y-SIC, a silicon carbide venture in which SHS is one of the partners.
According to SHS, the Saarland steel industry plans to invest EUR 4.6 billion in the transformation of production in Dillingen and Völklingen. The project is receiving a total of EUR 2.6 billion in support from the German federal government and the state of Saarland.
Around 120 structures will be built across the two sites as part of the transformation. The first has already been completed. Following preparatory and foundation work, construction has also begun on the superstructures of the new facilities. A DRI plant approximately 140 meters high, to be built in Dillingen, will be one of the key components of the new production process.
Peter Maagh, SHS Executive Board Member for Technology and Production, said the company is constructing the new production infrastructure while continuing operations at the existing facilities. Jonathan Weber, Executive Board Member for Finance and Transformation, said the project involves more than just new facilities, requiring changes to the raw material and energy mix, production processes, IT systems and cost structure. According to Weber, Power4Steel is at the center of the group’s goal of supplying customers with lower-CO₂ steel and maintaining its long-term competitiveness.
During the visit, SHS also presented the Y-SIC initiative, which aims to produce high-purity silicon carbide for use in the semiconductor industry. SHS and the state of Saarland are participating in Y-SIC as industrial partners. With the funding provided, the initiative plans to establish its first commercial silicon carbide production facility at the Dillinger site.
According to the company, Y-SIC has developed a new process for the continuous industrial-scale production of silicon carbide powder. The initiative aims to produce the material competitively in Europe. SHS CEO Stefan Rauber said that while Power4Steel is establishing the infrastructure for the transformation of steel production, Y-SIC is enabling the group to enter a new business area.
Author: SteelRadar Editorial Team
