Salzgitter AG Intensifies Cost-Cutting Measures to Address Financial Losses

The German steelmaker doubles its annual savings target to 500 million euros, while maintaining its green steel program and exploring defense opportunities.

• Salzgitter AG reported a financial loss of 348 million euros in 2024, driven by weak demand, falling steel prices, high energy costs, and imports.
• The company has increased its annual cost-saving target to 500 million euros until 2028, focusing on procurement, logistics, and sales.
• Despite financial challenges, Salzgitter remains committed to launching its green steel production within 18 months, which aligns with Germany's climate goals.
• Job reductions are expected as part of the cost-saving measures, but the company plans to manage the impact through socially responsible strategies in consultation with employee representatives.
• Salzgitter is positioning itself to benefit from anticipated government investments in defense and infrastructure, creating a task force to coordinate its efforts in these sectors.

7 Articles

Stern Stern Stern Der Tagesspiegel Sächsische Zeitung Frankfurter Allgemeine Zeitung WELT