Green steel on the Saar: Revolution for 15,000 jobs!

Green steel on the Saar: Revolution for 15,000 jobs!

The Saarland steel industry is facing a fundamental restructuring that will radically change not only production methods but also environmental awareness. Dillinger Hütte and Saarstahl AG have decided to introduce the latest technologies in order to achieve environmental and climate protection goals. A central project is the development of “green steel”, which is to be implemented by 2029. This could offer over 15,000 employees in the region a secure work and life perspective, as the Saarbrücker Zeitung reports.

With an ambitious roadmap, SHS – Stahl-Holding-Saar and its subsidiaries Saarstahl and Dillinger Hüttenwerke are aiming for CO2-neutral steel production by 2027. The production facilities are to be built in the Dillingen and Völklingen plants, with Saarland identified as the most competitive location. The restructuring of the production process will include the introduction of a new production route that includes electric arc furnaces (EAF) and a direct reduction plant (DRI) in Dillingen.

Innovative technologies and sustainable solutions

The new plants in Völklingen and Dillingen are designed for a total capacity of around 3.5 million tons of crude steel per year, some of which will use green hydrogen to generate energy. In order to reduce CO2 emissions, a blast furnace in Dillingen will also be closed. These comprehensive measures are part of consideration to explore various technology and location options before final decisions are made.

Dillinger Hütte will continue to play a central role as a leading manufacturer of heavy plate, while Saarstahl will concentrate on the production of high-quality wire and bar products. Demand for green steel is expected to increase, particularly with the addition of steel from Saarstahl Ascoval, which is already produced in northern France.

Financing and economic prospects

However, restructuring the steel industry is not only a technical challenge, but also a financial one. The investments for the construction of the new production facilities can amount to a single-digit billion amount. In order to close this financing gap, SHS and its subsidiaries rely on funding at federal and EU levels. The SHS is aiming for a maximum funding quota and plans to submit corresponding applications.

With around 14,000 employees and a turnover of around 5 billion euros, SHS is Germany's third largest steel manufacturer, with an annual production of around 4 million tonnes of steel. The coming years will be crucial for how the Saarland steel industry can shape its competitiveness in the global market as well as its responsibility towards the environment and society.