Steel industry: Salzgitter doubles savings program to 500 million euros

The steel manufacturer Salzgitter tightens his savings course in the face of the red. Instead of the previously targeted 250 million euros per year, 500 million euros are to be saved annually by 2028, said CEO Gunnar Groebler from the German Press Agency. The focus is not on personnel cuts.

Groebler wants to save especially when purchasing, logistics and sales. Especially in procurement, he sees considerable potential. And the investments also take a close look at the group again, which is imperative and what is imperative.

It will not work without any job cuts. “If you raise efficiency advantages, at the end of the day it also has an effect on jobs,” Groebler admitted. Here you rely on socially compatible instruments. Details are now being negotiated with the employee representatives.

Conversion to green steel runs

However, there should be no cuts in building green steel production. The current renovation program will be implemented as planned, the production of the low of the CO2 steel will start within the next 18 months. “We don’t shake that.”

Last year, business development was burdened by weak demand and falling steel prices. The company also suffered from imports and high energy prices. The bottom line was a loss of 348 million euros, after winning 204 million euros in the previous year. In 2025, the company expects at best stagnating sales and a slightly better result.

View of military orders

The company now pays off opportunities in the areas of defense and infrastructure, where the upcoming federal government is planning billions in investments. “The topic of defense will be of greater importance and we will and want to participate in that,” said Groebler. It is about safety steel or pipes for military vehicles. Salzgitter has now founded a task force that coordinates the internally.