Salzgitter expands portfolio for defence sector
Salzgitter AG will further expand its portfolio for defence purposes this year, Kallanish heard from chief executive Gunnar Groebler during the firm’s annual results conference on Friday. The firm is also seeking tighter EU restrictions against slab imports from Russia.
“We see good potential for our portfolio in renewable energies, especially wind power, but also in defence,” Groebler said. The German company is already a supplier to the German armed forces, and has now established the brand of “Secure” steels, and a “Defence” task force to coordinate further activities in this direction.
“Geopolitical tensions have set new measures of defence capability, and are creating new demand for security steels and special grades,” the company writes in its presentation.
“We have a wide scope of steels for security purposes, and we are in talks with a number of suppliers of such components,” Groebler noted during the conference. The exploration of market potential for “Secure” steels mainly concerns the group’s Processing unit, which deals with tubes and heavy plate, but also its plate distribution subsidiary Universal.
The company is thus appealing to the European Union for firmer action on slab imports from Russia, which it says rose last year. “It cannot be that we support Russia’s war economy,” Groebler stated. These imports are also rolled into plate in the EU, competing with Salzgitter’s portfolio, mainly of plate products.
On plate prices, the company has observed a relative stabilisation since last autumn, after a longer decline. For sections, prices actually held up quite well throughout 2024, and into this year.
Germany plans to decarbonize one-third of domestic steel capacity by 2030
During Germany’s National Steel Summit held in Duisburg, politicians and industrial associations have spoken in favor of the preservation and green transition of the domestic steel industry and have listed the needs of the sector, according to media reports.
Robert Habeck, German federal minister for economic affairs and climate action, stated that Germany and the EU are spearheading the decarbonization of the steel industry. “In Germany, we will convert around one-third of German crude steel capacity by 2030 and, in doing so, produce around 12 million mt of carbon-free steel,” Mr. Habeck added.
As stated in local German media reports on the summit, steel production is the foundation of many sectors such as automotive and mechanical engineering and their transformation, though it is very energy-intensive and accounts for seven percent of Germany’s total greenhouse gas emissions. New technologies and the use of renewable or green energies such as hydrogen are needed.
The German government has been allocating billions of euros for large-scale renewable energy plants, but the domestic steel industry is facing the risk of a weak economy and high energy prices, and cheap imports mainly from Asia. Therefore, IG Metall, one of the largest metalworkers’ unions in Germany, has urged politicians to create a reliable investment environment and to ensure competitive prices for electricity.
Gunnar Groebler, president of the German Steel Federation, stated that Germany needs to establish green markets, to keep energy prices in check and to create effective protection against unfair competition in order to support the industry, which is under pressure.
Additionally, other unions pointed out that a competitive domestic steel industry is essential for industrial value chains, prosperity, employment and a green transformation in Germany and Europe.
Gunnar Groebler new president of Wirtschaftsvereinigung Stahl (WV Stahl)
The German Steel Federation (WV Stahl) has elected Gunnar Groebler, CEO of Salzgitter AG, as its new honorary president. He replaces Bernhard Osburg, who has resigned from the position.
Groebler expressed his commitment to preserving the competitiveness of the German steel industry and ensuring its future viability, especially in light of the current challenging market conditions. Osburg thanked the WV Stahl team for their support and wished Groebler success in his new role.
“I thank the Board of WV Stahl for their trust and look forward to shaping the future of the German steel industry in this role. Bernhard Osburg has done important and energetic work and provided valuable impetus under the currently extremely difficult market conditions. My task now is to do everything I can to preserve the acute competitiveness of our industry and to advance its future viability,” said Gunnar Groebler.
Bernhard Osburg on his departure: “It has been an honor for me to represent the steel industry in Germany as president of WV Stahl. I have been passionate about this industry for 25 years and the association is a political interest group that is focused on our pressing issues and does not need any distractions. I thank the entire WV Stahl team for their professional support during my tenure and the management for the excellent cooperation. I wish Gunnar Groebler every success and a happy hand in his new task.”
