The societal and climate policy requirements of a circular economy present the steel industry with new far-reaching challenges. With its Corporate Strategy 2030 and the transformation project SALCOS (Salzgitter Low CO2 Steelmaking), Salzgitter AG aims to set an example for the entire industry and achieve the urgent goal of CO2-free steel production in the near future. 

Circular Economy: Challenge and Opportunity 

Facing the drastic consequences of climate change, the consistent implementation of a circular economy is one of the greatest challenges of our time. Salzgitter AG sees this challenge as an opportunity. As a central player in the sector, the steel producer from Lower Saxony is assuming its responsibility. Therefore it is investing in the transformation of all areas of the value chain. The corporate motto "People, Steel and Technology" signals a clear vision: to shape the entire industry through strength of implementation and willingness to cooperate, and to replace the dusty image of a resource absorbing industry with that of a pioneer of the circular economy.

"Green Steel" made in Salzgitter

The strategy focuses on accelerating the decarbonization of steel production, sourcing electricity from renewable energy sources, and optimising scrap recycling. The stated goal here is to reduce CO2 emissions from steel production by 95% by the year 2033, which would be equivalent to cutting Germany's total CO2 emissions by one percent. To this end, Salzgitter AG is investing in the extensive modernization of its own production facilities. Technologies such as blast furnaces and converters are being replaced by electric furnaces and direct reduction plants. The main impetus on the road to decarbonization, however, lies in replacing the traditional heating process using coking coal with innovative as well as clean hydrogen technology. In October 2022, the government of Lower Saxony, the German Federal Government and the EU Parliament also gave a vote of confidence in the future viability of "Green Steel" from Salzgitter. The federal and state governments are contributing a total sum of one billion euros to the company's sustainability strategy.

Breaking new ground together

The central role played by the use of hydrogen also shows that Salzgitter AG is not only relying on its own implementation strength. The increased demand for hydrogen will strengthen the hydrogen industry and thus Germany as a business location as a whole. Setting new technological standards and expanding its own transformation strategy in cooperation with customers, suppliers and other steel producers are key parts of Salzgitter AG's entrepreneurial vision. Here, innovation and leadership aspirations are confronted with the magnitude of the challenge of a circular economy. The exchange of experience and the identification of mutual problems are essentials on the joint path to a green future.

Growing reliably

Even though the investments made in sustainable steel production remain an entrepreneurial risk, Salzgitter AG already made clear in its Corporate Strategy 2022 that the restructuring of its own company is not only a necessity in terms of climate policy, it also represents an economic opportunity. The steel producer has made a promise to seize this opportunity and still guarantee consistent quality, the expansion of jobs and entrepreneurial independence. Salzgitter AG thus combines the claim to a sustainable future of "Green Steel" with equally sustainable and reliable growth of the company.

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