Salzgitter ceo, Gunnar Groebler is calling on the German state to support the uptake of reduced emission steel, Kallanish learns.
“We need politics that actively shapes the markets of tomorrow,” Groebler says in a social media post.
“The acid test here is public procurement. The government need to live up to its role as a pioneer. With smart incentives, like factoring in the use of CO2-reduced steel in the car fleet, it makes regulatory and economic sense for carmakers to use such steel. This would create a pull that can never be achieved with mere subsidies,” Groebler says.
In the first half of its financial year, the German steelmaker delivered “an encouraging performance”, which has prompted the company to lift its earlier profit forecast.
Its revenue of €4.6 billion ($5.3 billion) was slightly below the first half of 2025 compared with €4.7 billion a year earlier. However, Ebitda of €459 million “significantly outperformed” the previous result of €117m.
The main drivers were an exceptionally high earnings contribution from its participating interest in copper maker Aurubis, and the technology business unit.
Meanwhile, the steel focused units of steel production, and trading, also improved their figures, but were more burdened by geopolitical uncertainties, as a consequence of the war in the Middle East.
Crude steel production went up by 100,000 tonnes to 3 million tonnes. Meanwhile, its profit improvement programme made a sustainable contribution of €97m.
Additionally, the group undertook the move to acquire full ownership in Duisburg mill Hüttenwerke Krupp-Mannesmann (HKM) during H1. “The full inclusion of HKM prompted us in mid-July to revise our guidance for the financial year 2026 upward again, says cfo Birgit Potrafki.
In view of the various geopolitical and economic uncertainties, the group anticipates only a moderate improvement in general business conditions.
The group expects revenues of €10 billion for the full year, and Ebitda of €725-825m.
