Lindab to source steel from Salzgitter’s Salcos route
Lindab Steel, a subsidiary of ventilation technology group Lindab AB, and Salzgitter Flachstahl GmbH have signed a memorandum of understanding (MoU) for the delivery of CO2-reduced steel from the producers Salcos route.
The ‘green’ steel produced in this way is used primarily for ventilation products such as air ducting systems and profiled construction products such as roof and facade cladding, Salzgitter says.
“Our ambition is to reach net-zero greenhouse gas emissions across the whole value chain by 2050 and we see Salzgitter as a contributing partner on our journey,” says Thommy Psajd, sourcing director at Lindab Steel.
Lindab last year signed a similar deal with Tata Steel Nederland.
Christian Koehl Germany
Salzgitter lays cornerstone for green hydrogen plant
Salzgitter has laid the cornerstone for what it says is one of the largest production plants for green hydrogen in Europe, Kallanish notes.
Starting from 2026, the plant will generate around 9,000 tonnes/year of green hydrogen to be used for the production of carbon-reduced steel. This will mark the start of the industrial use of hydrogen in the company’s SALCOS – Salzgitter Low CO2 Steelmaking – project. The 100 MW electrolysis plant will be supplied by Andritz.
A contract between the two companies was signed in September 2023 (see Kallanish September 2023). The engineering involves partner company HydrogenPro. The partner’s pressurised electrolyser stacks are particularly suited for large-scale industrial application, according to Andritz executive Domenico Iacovelli.
Separately, the steelmaker announces its plate-making subsidiary Ilsenburger Grobblech has signed a contract with wind turbine manufacturer Siemens Gamesa for the delivery of around 25,000t of heavy plate.
These will be used for the construction of 36 wind towers of Siemens Gamesa’s “GreenerTower” type. The special feature of this tower is its CO2eq emissions of less than 700 kg per tonne of steel, Salzgitter notes.
The CO2eq-reduced tower has been part of Siemens Gamesa’s product portfolio since 2024. The first use of the towers will be in the “Thor” offshore wind farm in the Danish North Sea. This is planned to be completed by the end of 2027 and have a capacity of more than 1,000 MW.
Christian Koehl Germany
Salzgitter supplies lower-emission steel for onshore wind turbines
Salzgitter has announced its subsidiary Enercon, a wind turbine manufacturer, and engineering company SMB Schönebecker Maschinenbau, part of TM Group, will cooperate to produce wind towers with lower-emission steels.
Enercon is a subsidiary of Salzgitter’s plate making unit, Ilsenburger Grobblech.
The steel tower components from the cooperation will be used in early 2025 on an E-138 EP3 wind turbine as part of the Diepholzer Bruch wind farm project in Lower Saxony, Germany. This will make it one of the first onshore wind turbines in Europe – and the first in Germany – to feature a tower made from lower-emissions steel, Salzgitter notes in a statement sent to Kallanish.
Wind turbines with a hybrid tower concept are made completely of steel, the company notes. The bottom is composed of pre-edged steel plates, and the top of conical steel sections. This type of tower offers advantages both for installation and transport, particularly in view of increasing tower heights with even larger tower base diameters, Salzgitter highlights.
In order to reduce greenhouse gas emissions in the production of heavy plates, Ilsenburger Grobblech is using physically CO2-reduced slab from sister company Peiner Träger and another European partner company. The feedstock is produced entirely from scrap in an electric arc furnace.
Christian Koehl Germany
Private consortium increases non-binding offer to acquire German steelmaker Salzgitter
The consortium consists of GP Günter Papenburg AG, who currently holds 25% shares of Salzgitter and German major recycler TSR Recycling GmbH & Co KG.
“We can confirm that a non-binding offer has been submitted to Salzgitter AG, stating an indicative offer price of €18.50 ($19.28) per share, and that [Salzgitter] is in talks with the consortium,” Salzgitter’s spokesperson told Fastmarkets.
After the news emerged, Salzgitter’s share prices on Frankfurt Stock Exchange jumped to €16.62 per share on January 23, compared with €15.78 per share on the previous day.
“As soon as a formal offer has been received, the Management Board and the Supervisory Board will comprehensively review and evaluate it in accordance to legal obligations,” Salzgitter’s spokesperson added.
In November 2024, GP Günter Papenburg AG and TSR submitted a non-binding offer, but at €17.50 per share, several sources told Fastmarkets.
The consortium is looking to achieve an aggregate shareholding of at least 45% plus one share, including the shares already held by the German construction company, Fastmarkets previously reported.
Currently, the German state of Lower Saxony is the largest shareholder in the company at 26.5%, according to Salzgitter’s data. GP Gunter Papenburg currently owns a share of 25.1%, and Salzgitter has 10%. The rest of the shares are distributed among other retail and institutional investors.
“In recent months, the state government has held intensive discussions on the plan for a possible takeover of Salzgitter AG by the Papenburg Group and TSR. According to the considerations known to the state so far, no economic advantage or contribution to the sustainable development of Salzgitter AG could be seen from the proposed conditions,” a statement from Lower Saxony’s Ministry of Finance, received by Fastmarkets on January 23, said.
“New and more specific conditions have now apparently been proposed to Salzgitter AG, which must first be examined and evaluated by the board of directors of Salzgitter AG. The Ministry of Finance is not yet aware of the proposal in detail…The state does not plan to sell its shares in Salzgitter AG,” the statement said.
Market brief
Salzgitter currently runs three blast furnaces with a combined capacity of about 4.8 million tonnes per year of crude steel. The company produces hot-rolled coil, cold-rolled coil, electro-galvanized, hot-dipped galvanized and organic coated steel sheet.
The company posted negative financial result for the first nine months of 2024, according to the latest reported published in November 2024.
Company’s steel sales in January-September 2024 decreased by 8.07% compared with the same period of time in 2023 to €7.7 billion. For the same period the company’s earnings before interest, taxes, depreciation and amortization dropped by 44.3% year on year to €320.6 million.
Earnings before interest and taxes was at a loss of €54.6 million compared with a profit of €341.6 million in January-September 2023.
Market conditions in Europe have remained challenging, with real steel consumption deteriorating, with the construction sector in particular suffering from weak demand — under pressure from higher interest rates and rising building costs.
In October 2024, Fastmarkets daily steel HRC index, domestic, exw Northern Europe averaged €549.25 per tonne, the lowest level since November 2020, when the index averaged €530.72 per tonne
This report was updated to include quotes from Lower Saxony’s Ministry of Finance on Thursday January 23.
Cogne finalizes Mannesmann tubes acquisition to expand stainless footprint
Italian long stainless steel and nickel alloy producer Cogne Acciai Speciali has finalized the acquisition of Mannesmann Stainless Tubes from German steelmaker Salzgitter, it said Nov. 1.
The Eur135 million ($144.5 million) deal was first announced in February, with Cogne saying at the time that the acquisition would widen its footprint to encompass the market for seamless tubes and stainless steel nickel alloy pipes. The EC cleared the merger in June.
“With this new acquisition we realize a further step in our strategy, which brings us a historic player in the seamless tube market, whose upstream integration with Cogne will make it even more competitive,” Cogne CEO Massimiliano Burelli said.
Mannesmann Stainless Tubes produces seamless stainless steel and nickel-based tubes in Germany, France, Italy and the US.
Upon joining the group, the company will be renamed DMV. Cogne previously provided Mannesmann with semi-finished products.
Cogne manufactures long products in stainless steel and nickel-based alloys for the aerospace, automotive and energy industries, as well as supplying the medical technology, food, chemical and plant engineering, and mechanical engineering sectors.
Platts, part of S&P Commodity Insight, assessed European 18-8 stainless steel scrap solids at Eur1,1170/mt Nov.1 on a CIF Rotterdam basis, stable on the day and up Eur10 week over week.
The 18-8 stainless steel scrap clips and solids are a commonly used reference for the grade-304 stainless steel scrap. The scrap contains a minimum of 16% chrome content and minimum of 7% nickel content.
Cogne approves capital increase to buy Mannesmann
Cogne Acciai Speciali has approved a €45 million ($50m) capital increase. This decision will provide the necessary financial support for the acquisition of Mannesmann Stainless Tubes from Salzgitter AG, Kallanish learns from the Italian stainless long steel producer.
In a statement, Cogne highlights that this financial operation is a significant move designed to bolster the company’s ongoing expansion and strengthen its position in the special steel industry. It aims to enhance its portfolio and expertise in the global market.
The acquisition is expected to be finalised in the fourth quarter. Cogne, a subsidiary of Walsin Lihwa, is committed to expanding its global reach and catering to increasing demand from the aerospace, nuclear, medical, and energy sectors. As part of its ongoing efforts to improve operations, the company is currently investing in the modernisation of its Aosta plant in Italy. This includes revamping the cooling chamber of the continuous casting machine for special steel blooms. The upgrade was implemented during this year’s four-week summer shutdown.
The steelmaker recently expanded its operations by acquiring ComSteel Inox, its main stainless steel scrap supplier, and a portion of Outokumpu’s long products business in Degerfors and Storfors, Sweden.
Since it was acquired by Walsin Lihwa, it has grown through a series of mergers. Last year, it completed the acquisition of Sheffield-headquartered Special Melted Products (SMP). Walsin is investing over €110 million ($121m) in Cogne’s Aosta plant between 2022-2024. The growth strategy involves gaining market share in Europe and Asia, and developing the group’s presence in the US (see Kallanish passim).
Natalia Capra France
Salzgitter Mannesmann Handel introduces tool for carbon footprint
Salzgitter Mannesmann Handel GmbH, the distribution subsidiary of Salzgitter AG, is introducing a new calculation tool for the product carbon footprint (PCF).
The group describes the tool as a calculation methodology in accordance with the Greenhouse Gas Protocol and ISO 14067, determining the CO2 footprint along the entire value chain. It enables Salzgitter Mannesmann and its units to provide complete transparency concerning the carbon footprint of the steel products they are offering. Following successful validation by TÜV SÜD, the calculation tool will be made available to the market with immediate effect, Kallanish hears.
“The new PCF software solution calculates the PCF of the steel product, from raw material extraction through to the customer’s factory gate – cradle-to-customer entry gate,” says Tanja Jacobs, business development head at Salzgitter Mannesmann Handel. “The entire range of greenhouse gases are included and converted into CO2 equivalents,” adds Salzgitter Mannesmann Handel managing director Alexander Soboll.
Christian Koehl Germany
Hüttenwerke Krupp Mannesmann owners prefer sale over stake increase
Salzgitter and thyssenkrupp Steel, co-owners of Hüttenwerke Krupp Mannesmann (HKM), have no interest in taking over the 20% stake in the Duisburg mill still owned by Vallourec.
In fact, thyssenkrupp Steel, the largest owner with 50%, has now made it clear that it also wants to divest its stake. “We are aiming for a sale of [our stake in] HKM,” thyssenkrupp chief financial officer Jens Schulte told Kallanish during a conference call on Wednesday. He referred to a statement to that effect made last week by Sigmar Gabriel, the supervisory board chairman at tk Steel.
The decision makes sense from the view of thyssenkrupp, given the company recently decided to reduce its capacity and intends to sell 50% of its tk Steel division to EPCG. The Czech energy group recently bought an initial 20% and continues negotiations to take another 30%. While thyssenkrupp and EPCG did not disclose details of the transfer, Manager Magazin writes that EPCG paid €140 million ($155m) for its 20%, citing inside sources.
As far as Salzgitter is concerned, its chief executive, Gunnar Groebler, said on Monday the company does not intend to increase its 30% shareholding in HKM, although it earlier expressed an interest in doing so. Salzgitter has not specified if it wants to divest or keep it stake.
Pipemaker Vallourec has long kept its stake because HKM’s slab is ideal for making tube. It was however reported last year to be seeking to divest its interest. Retaining the stake would be a reasonable path for Salzgitter, too, considering its Mannesmann Tubes business, in addition to the obvious kinship of roots in the traditional Mannesmann company.
Christian Koehl Germany
German steelmaker Salzgitter expects lower strip shipments for rest of 2024
German producer Salzgitter expects strip steel shipments to continue at a somewhat lower level for the rest of 2024, with section shipments at around the same level, and crude steel production running at a slightly reduced rate, according to its interim earnings Aug. 12.
In the first half of the year, Salzgitter produced 2.69 million metric tons of crude steel, slightly up on the same period of 2023, when it registered 2.51 MMt. In the same period, shipments were 2.81 MMt against 2.77 MMt in H1 2023, but shipments sales moved down to Eur2.47 million mt from Eur2.69 million mt.
Salzgitter said it expects the economy to remain weak in the heavy steel plate market, with order intake forecast “to drop below the already weak year-earlier level, with prices under intense pressure.”
The company said that pipe plate output is only likely to benefit around year-end, following delays in awarding projects for large-diameter pipes, while there will likely be a significant downturn in volumes in its medium-diameter pipe segment. In the precision tubes group, demand remains hesitant following on from the previous year, it said.
In the company’s steel processing business unit in H1, Salzgitter rolled 520,000 t of steel products against the 538,000 t recorded in the same period of 2023.
A generally improved result is expected for the trading business unit in 2024, thanks to more stable prices than in H1 2023.
Platts, part of S&P Global Commodity Insights, assessed the 62% Fe Iron Ore Index at $98.85/dry metric ton CFR North China on Aug. 12, down 45 cents/dmt from Aug. 8, in line with tradable values.
Salzgitter said it is also on track in its low carbon transformation program, which aims to fully convert the integrated steelworks of Salzgitter Flachstahl by 2033. At the moment, the company is in the process of building a 100 MW electrolysis plant, a direct reduction plant and an electric arc furnace.
Platts assessed Northwest European hot-rolled carbon-accounted coil at Eur725/t ex-works Ruhr Aug. 9, down Eur10 on the day.
The assessment was calculated in line with the sum of Platts daily carbon-accounted steel premium assessments and Platts daily hot-rolled coil price assessments in Northwest Europe.
Annalisa Villa
Andritz to supply 100-MW electrolysis plant for Salzgitter green steel in Germany
Germany’s Salzgitter has ordered a 100-MW electrolysis plant from Andritz to produce green hydrogen, replacing coal in the steel production process at the company’s Salzgitter Flachstahl from 2026, the companies said in statements Sept. 20.
The plant will produce around 9,000 mt/year of hydrogen, with HydrogenPro supplying the high-pressure alkaline electrolyzers, using its 5.5-MW cell stacks, it said in a separate statement.
“This order represents a major milestone for our partnership with ANDRITZ, and the first step in our European expansion,” HydrogenPro CEO Jarle Dragvik said in the statement.
The project is part of Salzgitter’s Salcos program, which it will develop in three stages.
In a first phase from 2026, Salzgitter will commission a direct reduction plant, an electric arc furnace, and the 100-MW electrolysis plant.
The DRI unit will have a production capacity of over 2 million mt/year of direct reduced iron, while the EAF will produce 1.9 million mt/year of steel, according to Salzgitter Flachstahl and engineering company Primetal, which will build the EAF.
It aims to convert its operations to “virtually CO2-free steel production” by the end of 2033.
The first stage of Salcos is backed by subsidies from Germany’s federal government and the state of Lower Saxony, as well as by the company’s own funds.
Salzgitter Flachstahl Chairman Ulrich Grethe said the development of hydrogen infrastructure in Germany was key to unlocking industrial decarbonization.
“In order to enable us to reduce the CO2 footprint of our steel production in the future, it is imperative that we connect to the emerging hydrogen infrastructure as quickly as possible,” Grethe said in the statement.
German gas transmission system operators in July published a draft hydrogen pipeline network map, linking hydrogen production and demand centers, storage facilities, power plants and import corridors across the country.
The proposed network is made up of converted existing natural gas pipelines, along with newly constructed dedicated hydrogen pipes.
The core network will include key infrastructure expected to be operational by 2032, with scope to expand the network further in later stages.
Germany is targeting domestic renewable hydrogen production capacity of 10 GW by 2030, and is also eyeing large-scale imports through schemes such as H2Global.
Platts, part of S&P Global Commodity Insights, assessed the cost of producing renewable hydrogen via alkaline electrolysis in Europe at Eur6.15/kg ($6.58/kg) Sept. 19 (Netherlands, including capex), based on month-ahead power prices. Proton exchange membrane electrolysis production was assessed at Eur7.23/kg.
Author: James Burgess
