"The Strategy Salzgitter AG 2030 is focussed on Circularity and the principle of resource-conserving closed loops of energy and materials with a low CO2 footprint."

Gunnar Groebler, Chief Executive Officer

Focussing our vision

Salzgitter AG 2030

The Strategy "Salzgitter AG 2030" replaces the previous Salzgitter AG 2021 growth strategy. In the future, the innovations and efficiency programs of recent years will unleash their full potential and, together with the new strategic orientation, positively shape the financial and balance sheet structure.

The central goal of the strategy

Industry rethought

The Strategy "Salzgitter AG 2030" responds to political and social demands to move toward a sustainable industry. In this context, the Executive Board underlines the importance of breaking new ground in order to create a valuable and future-proof sustainability for the Group in all business units. Moreover, Salzgitter AG will continue to focus on tradition, profitable independence, diversification and consistent strength of implementation in order to be able to offer innovative and sustainable products and services.

100

%

towards the future

"People lead the way as pioneers, set the direction, and make a major contribution with their daily work. They give us the chance to continue to develop in a positive and sustainable way."

Michael Kieckbusch,
Executive Board Human Ressources

Pioneering for
Circular Solutions

"With our innovative products and
processes, we are market leader for
Circular Economy Solutions in global
industrial value chains."

People at the center of our actions

Our vision

Our vision is intrinsic to our strategy and describes the next goal to be achieved. This goal is to establish Salzgitter AG as a leading company in the Circular Economy World, the world of holistically considered product and service cycles. However, our vision is not only the objective of the Salzgitter Group, but should above all guide our companies and employees in their daily challenges. The people, our employees, play a central role. After all, we cannot implement our strategy without them.

Derived from the vision, our mission defines our new entrepreneurial aspiration.

"Our supplier and customer industries are, just like us, facing the tasks of the future. Together, we want to provide the necessary impetus for change in order to drive this transformation forward economically and successfully. A success that builds on each other. Shaped by different strengths and the same values."

Gunnar Groebler
Chairman of the Executive Board
at Salzgitter AG

Partnering for
transformation

„Together, we are resolutely breaking
new ground, transforming the industry and
creating sustainable value for the
future.“

Together, we take the path in partnership with each other

Our mission

The corporate mission formulates clear what the company is pursuing for. It reflects an overarching corporate purpose.

The market conditions in our core markets are changing in the light of the sustainability debate, and the targets for generally reducing the carbon footprint are to be stepped up considerably in the coming years. The Group wants to live up to its responsibility towards society and the coming generation.

Our mission is therefore formulated in such a way as to highlight the importance of the interplay between of all business units, products, technologies, employees and partnerships.

To transform the future together and forging partnerships is the basic idea behind our mission

To press releases

We want to derive support for ourselves across sectors and promote each other through cooperation and partnerships. A constant exchange of knowledge is important for staying ahead in this process of change, for entertaining diverse standpoints and incorporating them into our work, while taking in additional external stimulus.

We are also making our mark, not only together with companies from the energy industry, such as Ørsted and Uniper, but also from other sectors. In this way, the Salzgitter Group could also include the BMW Group, Volkswagen und Tenova in the partner network. The further expansion of this network is part of our daily challenges.

For People, Steel and Technology

Pioneering for Circular Solutions

The primary goal of our company will continue to be independence through profitability, growth, diversity in practice and consistent strength in implementation.
Focussing on „people, steel and technology“ we are leading the Salzgitter AG into this decade with a new corporate design and thus securing the future viability of our Group.
The concrete goals until 2030 assigned to the core sectors are:

Graphic of Score Card Strategy "Salzgitter AG 2030"

"We have now cast our ambitions into concrete figures and translated them into a score card that we will use to measure our progress in achieving the newly defined financial and non-financial KPIs as part of the “Salzgitter AG 2030” strategy. Our target of achieving a regular EBITDA margin of between 8 % and 10 % as from 2025 means nothing less than perpetuating the results of exceptional years, such as the last one."

Burkhard Becker,
Executive Board Finances until the end of March 2024
Accompany us on our journey

Becoming the strongest steel and technology group together

In the area of Circular Economy, the focus is on significantly accelerated decarbonization, the electricity procurement from renewable energy sources (and as far as possible from our own), and the expansion of scrap recycling. As a result, the first blast furnace is to be shut down by 2026 and replaced by direct reduction equipment and electric arc furnaces. Already in 2033, 12 years earlier than originally planned, the integrated steel mill is to be fully geared to low-carbon production. Scrap recycling activities are to be expanded by over 50% to 3 million tons per year.

Strategic partnerships and checkpoints ensure that Circular Economy goals can be achieved. These include the creation of access to high quality scrap and renewable energy sources, as well as the availability of green hydrogen, direct reduction (DR) grade pellets or direct iron reduction (DRI) equipment, as well as electric arc furnaces.

In the area of Growth and Profitability, Salzgitter AG aims to grow in existing and new fields of business and to expand annual sales to over € 11 billion by 2030. "Our Group companies are expected to set new standards in terms of profitability and stability in their respective industry comparisons. For this purpose, we also plan to continue our efficiency programs and leverage additional earnings improvement potential of more than € 150 million p.a. from 2026 onwards," stated Burkhard Becker, Chief Financial Officer of Salzgitter AG until the end of March 2024. "The Salzgitter share stands for successful, sustainable and long-term capital market investment. We are relying on dividend continuity, and our share will rank in the Top industry quartile of top international ESG ratings in 2030. We underline our ESG ambitions by identifying and tracking our 2030 targets with immediate effect, based on Science Based Targets." Furthermore, we are driving digitalization across all process stages - from administration and production to volatility management and sales/trading.

In the Employees area, Salzgitter AG targets a reduction in the number of accident occurrence and an enhancement of the proportion of women in new non-tariff/management positions to 30 % in 2030.

Reduce – Reuse – Recycle – Rethink

Circularity

Processes and product developments are viewed holistically and are combined intelligently and this at an early stage when products are designed, together with our customers. All our business units pursue the principle of the Circular Economy in their processes and solutions. We also embed it in our collaborations and partnerships with our customers and suppliers.

Steel is probably the most sustainable and universal material and is firmly anchored in our society. It can be used flexibly and we encounter it in all areas of life. But what makes it particularly valuable is that it is infinitely recyclable. It is therefore probably the best ambassador for a Circular Economy. Gunnar Groebler, Chairman of the Executive Board of Salzgitter AG, clarifies what Circularity is all about:

"The Salzgitter Group defines Circularity as keeping resources once extracted from nature in economic use as long as possible, and thus to minimize the additional introduction of finite resources into the economic cycle. We make this principle the core of our economic activities. In this way, Salzgitter AG is taking up the social challenge and securing higher and more stable growth in sustainably oriented markets in the future. Our customers are increasingly converting their supply chains to green resources. We will support this development with the new strategy, thereby securing the future viability of the Group and its jobs."

"The Salzgitter AG is already an important player in scrap recycling. We have firmly established process chains in this area as we already transport and treat around two million tons of scrap a year. We have introduced closed loops with our customers for the return of scrap metal and will reinforce them in the future. Conducting business in a resource-conserving and energy-efficient way has been an important issue for us for a long time: In running our energy efficiency program at the Salzgitter location, we have implemented 265 measures since 2010, thereby saving a total of €250 million and 1.8 million tons of CO2," explains Sandrina Sieverdingbeck, Managing Director of Deutsche Erz- und Metallunion (DEUMU) and former Head of Strategy and Corporate Development at Salzgitter AG. 

Another stage in Circularity is recycling with the aim of making used products reusable again. Salzgitter AG is already practicing this today, for instance, through upcycling beverage bottling lines. "As part of our retrofit measures, we fully recondition and modernize our customers’ plants for them after years of usage. The machinery is subsequently deployed in its entirety at the customer and works perfectly," says Sieverdingbeck. Burkhard Becker, Chief Financial Officer of Salzgitter AG until the end of March 2024, adds: "It’s not only our core products we keep an eye on, however. Residual material that is not eligible for recycling is recovered for its material or energy. For instance, our slacks generated through the smelting of pig iron has been put to new use in the construction industry and no longer disposed of on a landfill site, as was previously the case. In addition, we are using a growing volume of energy from renewable sources, with the aim of making the energy-intensive production of our products climate neutral."

Salzgitter AG will even go one step further: also view the relaying of knowledge and information between young and seasoned employees as Circularity and understand this as an opportunity for a culture lived on an equal footing.

01 REDUCE

Reduce – we want to become more conscious in our use of finite resources and thus minimize them in the economic cycle.

02 REUSE

Reuse – we want to keep resources once extracted from nature in economic use for as long as possible.

03 RECYCLE

Recycle – we want to reuse raw materials from products already in use to save resources.

04 RETHINK

Rethink – we question our habits and processes and develop a sustainable industrial organizational structure.

Business Units

Strategic directions

Salzgitter AG's strategy is reflected in the strategic goals of the individual business units Steel Production, Steel Processing, Trading and Technology.

STEEL PRODUCTION BUSINESS UNIT

The newly created "Steelmaking" business unit combines the Group companies of the former Strip Steel business unit with further companies from the steelmaking sector.

Strategic goals:

  • Transformation of primary metallurgy: replacement of blast furnace technology with low-CO2 steel production
  • Scrap recycling: Strengthening closed-loop recycling of steel scrap
  • 2030: Profitability leadership of CO2-neutral carbon steel
  • Continuation of the shift in the product portfolio toward sustainable, highly sophisticated customer solutions and increase in sales in target segments with high value added
  • Consistent establishment as a supplier in green markets
  • Stable production and business processes based on the principle of the Circular Economy and optimization of these processes through digital solutions
  • Continuous volatility and profitability management

Along with the steel producing companies Salzgitter Flachstahl GmbH and Peiner Träger GmbH, the Steel Production Division also combines DEUMU Deutsche Erz- und Metall-Union GmbH as an important internal transformation partner for Salzgitter AG's SALCOS® program.
One of the core issues in steel production is the transformation towards low-CO2 steel production: from 2025, one third of crude steel is to come from low-CO2 production and production is to be successively converted by 2033 (see also SALCOS®). In this context, Salzgitter AG continues to focus on quality and profitability: the Steel Production Unit is striving to achieve profitability leadership in CO2-neutral carbon steel by 2030. A sustainable and consistent implementation of the "Pushing Boundaries" offensive launched in 2014 is aimed at continuing the shift in the product portfolio towards sustainable, highly sophisticated customer solutions. With the startup of a new hot-dip galvanizing line in 2022, capacities for high-quality, surface-coated steel grades can be increased from 1 to 1.5 million metric tons per year. In combination with highly customer-focused product development capabilities, the most sophisticated technological material properties will be achieved. Resource optimization and stringent cost management also remain part of our actions. The implementation of the SMART IT Roadmap 2025 for the optimization of production and business processes through digital solutions plays an important role.

Peiner Träger GmbH provides an electric steel mill in which around 1 million tons of crude steel are melted from steel scrap each year in an environmentally friendly and energy-efficient way. Certified in accordance with the VERIsteel standard of TÜV Süd, Salzgitter AG is able to reduce the CO2 footprint there by more than 75 % in the CO2 balance of the slab and by more than 66 % in the CO2 balance of the hot-dip galvanized coil compared with the conventional blast furnace route.
The two electric arc furnaces operated here are among the world's most modern and efficient plants. From the raw material mix to accompanying processes and customer feedback, our plant setup in Peine provides us with an industrial-scale laboratory. This is a unique selling point of Salzgitter AG on the road to transformation. We are thus paving the way for a smooth ramp-up of the SALCOS® mega-project in Salzgitter. By expanding scrap recycling activities at DEUMU in the form of closed loops with our partners, we are securing and increasing scrap availability, starting from the current level of around 2 million tons of scrap per year. As pioneers on the way to the Circular Economy, we need not only the courage to break new ground but also a high degree of resilience: the ability to adapt to dynamically volatile and uncertain environmental conditions. Continuous volatility and profitability management are therefore equally important tasks for all Group companies.

STEEL PROCESSING BUSINESS UNIT

The newly created "Steel Processing" business unit combines the Group companies of the former Mannesmann business unit and other steel processing companies.

Strategic goals:

  • Pipe Division: Provision of H2-compatible pipes (pipe materials with "H2 readiness") for expected impetus with regard to the expansion of the pipe infrastructure for natural gas as a bridging technology and H2 as a future energy source
  • Provision of sustainable solutions for carbon capture and storage (CCS) of CO2 emissions
  • For the e-mobility sector, support for customer-oriented application development by Mannesmann Präzisrohr and expansion of the portfolio
  • For the heavy plate segment, qualitative growth and expansion of partnerships for the supply of green steel in the growth market of wind energy

The newly created "Steel Processing" business area combines the Group companies of the former Mannesmann business unit focusing on tube production with the two plate mills in Ilsenburg and Mülheim.

With a comprehensive range of applications from large-diameter pipes to specialty stainless steel tubes, our Tube Division is very well positioned with plants in Europe and North America. The maintenance and expansion of the pipe infrastructure for natural gas as a bridging technology and hydrogen as a future energy carrier will generate impetus in which Mannesmann can participate with the H2 readiness of its pipe materials. Where Carbon Capture and Storage (CCS) of CO2 emissions appears to be a viable route, Mannesmann can offer sustainable solutions. In the automotive sector, Mannesmann Präzisrohr is supporting the move towards e-mobility with customer-oriented application development, and is consistently expanding its diverse portfolio.

In the area of heavy plate production, alongside its activities as a supplier to traditional heavy plate customers such as the construction and infrastructure sectors, as well as shipbuilding and mechanical engineering, Salzgitter AG has also established itself in recent years as a reliable supplier of heavy plate in green markets, such as for the wind tower industry, thus making an important contribution to the energy turnaround. The aim is to take a strong partner position in the circular economy in the future with green steel for the supply chain in the growth market of wind energy.
The commissioning of a new heat treatment line at Ilsenburger Grobblech GmbH in 2021 will also accelerate qualitative growth in the heavy plate segment and set new standards for temperature-treated heavy plate. The claim is not only for excellent products and transparent processes, but also for excellent service levels.

TRADING BUSINESS UNIT

The "Trading" Business Unit combines the internationally active steel trading companies under the lead company Salzgitter Mannesmann Handel GmbH.

Strategic goals:

  • Transformation of the product range from gray to green steel
  • Strengthening the market position in sub-markets, especially in Eastern Europe
  • Expansion of digital services: from e-commerce to e-business
  • Establishment of sustainable customer-oriented solutions

The Trading Business Unit turns over more than four million tons of steel products per year. It is an important and valued partner to its customers from SMEs to major corporations worldwide. Geared to the needs of customers, an important strategic thrust here too is the transformation of the product range from gray to green steel. In the Circular Economy partner network, closed material cycles are supported from supply to return. A strong network of full-range trading warehouses with processing capacities serves the markets in all major European sub-regions. The aim is to strengthen our market position and grow further in submarkets, particularly in Eastern Europe. We already launched our digital marketing platform, e-world, in 2016. The Retail Business Unit will continue to expand its digital services and drive forward the end-to-end digitization of business processes. The overarching goal is to move from e-commerce to e-business. From digitally supported processing to optimized delivery and analytics-based order processing. This is how we do justice to the digital age and shape sustainable customer-oriented solutions.

TECHNOLOGY BUSINESS UNIT

The Technology Business Unit comprises three leading manufacturers of special machinery: KHS beverage filling and packaging equipment, KDS Klöckner DESMA shoe machines, and KDE Klöckner DESMA elastomer technology.

Strategic goals:

  • Further implementation of growth and profitability programs in growing markets.
  • KHS: Expansion of global presence, development of further market shares in standard business and development of innovative and ecological new products, e.g. to reduce packaging volumes
  • Reconditioning of machinery and equipment as a contribution to the Circular Economy

The Technology Business Unit of Salzgitter AG comprises three manufacturers of special machinery, each of which is one of the leading manufacturers in its respective market.
The KHS Group, headquartered in Dortmund, North Rhine-Westphalia, is one of the three leading companies for the production of beverage filling and packaging equipment with a total of ten production sites. Of these, 5 are located in Germany and one plant each in the USA, Mexico, Brazil, India and China.
Klöckner Desma Elastomertechnik GmbH has its headquarters in Fridingen, Baden-Württemberg. It is one of the leading manufacturers of injection molding machines in the rubber and silicone industries. Desma also has sites abroad in Slovakia, India, China and the USA.
Desma Schuhmaschinen GmbH, with its headquarters in Achim, Lower Saxony, is the world market leader for systems, machines and automation solutions for industrial shoe production.
All three companies have in common that in recent years various profitability and growth measures have been successfully implemented, which are now having an effect and will therefore be consistently continued in the future in order to make a valuable contribution to our customers in growing markets.

One of the KHS Group's thrusts is to expand its global presence in order to ensure that the service business, which is very relevant for KHS, is available to customers. Furthermore, additional market shares are to be developed in the standard business, in which technological developments are consistently implemented both in glass lines, canning lines, and PET lines. In addition, KHS is developing profitable, innovative new products, which in particular also make a contribution to reducing the overall volume of beverage packaging and to working more ecologically overall. Particular importance is attached to reliable processes, long-lasting products, and services for a resource-saving and CO2-reduced closed production chain: KHS is able to support its customers throughout the entire life cycle of their systems with ever new, value-adding solutions and upgrades, helping them to achieve their own sustainability goals such as climate neutrality. Partly also by refurbishing used machinery and preparing it for renewed production. In addition, certified green electricity has been used at all German sites for years, and expansion to the international production sites is envisaged.
In this way, the Technology Business Unit can make a significant contribution to the circular economy.

All business units
Strategic core themes in corporate design

A new brand identity

As part of the realignment of the Salzgitter Group, a fundamental brand relaunch is taking place. As a result, the strategic core themes are also reflected visually in the corporate design. The new brand takes up the vision and mission as well as the core theme of Circularity in all areas. It visualizes the values and the strategy comprehensively and thus results in a well thought-out and uniform overall image. Circularity is a central topic of the Strategy "Salzgitter AG 2030".

More about the new brand

SALCOS® - We turn steel green

With SALCOS®, we have joined forces with partners from industry and research to lay the foundations for virtually CO2-free steel production. Central elements of the concept are electricity from renewable sources and its use in the production of hydrogen by means of electrolysis. This green hydrogen will replace the coal we currently use in the conventional blast furnace process. This will be possible with the help of so-called direct reduction plants, in which iron ore is reduced to iron directly in the solid state by hydrogen. This technology emits water vapor instead of CO2.

Our SALCOS® program thus pursues the Carbon Direct Avoidance approach, which stands for avoiding the generation of CO2 in steel production from the outset. Overall, our approach enables us to reduce CO2 emissions in steel production by over 95 %.

To program SALCOS®

Conclusion

The Strategy "Salzgitter AG 2030“
for the future of the Group

Salzgitter AG is becoming Europe's strongest steel and technology group

Circularity forms the focus of the strategy

The Salzgitter AG is pioneer in low CO2steel production

The Salzgitter AG will grow in sustainably oriented business units

The future viability and jobs of our Group are secured

People are the central success factor of the transformation

We transform the industry together with our partners

We face the transformation with courage and resolution

We stand for: People – Steel – Technology