Strategy 'Salzgitter AG 2030'
Salzgitter presents new “Salzgitter AG 2030” strategy
02.02.2022 | Press release of Salzgitter AG
- Objective: to establish Salzgitter AG as a leading company in the circular economy
- Journey: shaping the transformation profitably and successfully together with customers and suppliers
- SALCOS® – “SAlzgitter Low CO2-Steelmaking”: full implementation targeted by 2033
- New corporate design reflects transformation
Salzgitter AG is presenting its new “Salzgitter AG 2030” strategy. The objective is to establish the Group as an independent market leader for circular economy solutions with innovative products and processes. Achieving this goal can only be successful together with strong partners and networks. To this end, closed-loop value flows and supply chains are to be established in cooperation with customers and suppliers. Salzgitter AG is committed to binding, science-based CO2 reduction goals and is joining the Science Based Targets Initiative (SBTi).
Gunnar Groebler, Chief Executive Officer of Salzgitter AG: “The market conditions in our core markets are changing very dynamically in the course of the sustainability debate and the goals set for CO2 reduction. We are actively addressing this change and realigning our company proactively to a circular economy. For the Salzgitter Group, circularity means keeping resources once sourced from nature for as long as possible in economic use, thereby minimizing the additional introduction of finite resources into the economic cycle. We have adopted this principle as the core of our business activities. We are rising to the societal challenge and securing greater and more stable growth in the future in sustainably oriented markets. Our customers are in the process of switching their supply chains to green resources. We will support this trend with our new strategy, which will secure the Group’s future viability, sustainability and its jobs.”
In a first step, we have defined the following goals that we intend to achieve by 2030:
- Reduction of Scope 1 and 2 CO2 emissions by more than 50% compared with 2018
- Power generated exclusively from renewable energies and, where expedient, also from our own production in order to make the still energy-intensive manufacturing of products as climate neutral as possible
- Expansion of the scrap recycling activities by over 50% to more than three million tons a year
“Climate protection is a task for the whole of society. We view this challenge as an opportunity and are making it the focal point of our activities,” as Chief Financial Officer Burkhard Becker stated. “We plan to grow in existing and new areas of business and increase annual revenues to more than € 11 billion over the period up until 2025. Our Group companies are called upon to set new benchmarks in a peer comparison with regard to profitability and stability. To this end, we also intend to proceed with our efficiency program and, as from 2026, plan to leverage more than € 150 million p.a. in additional profit improvement potential.”
A core element of the new strategy consists of significantly accelerated decarbonization within the context of SALCOS® – SAlzgitter Low CO2-Steelmaking. In charting this course, the Salzgitter Group is reinforcing its role as a front runner in low-CO2 steel production. As early as 2025, the first blast furnace is to be replaced by direct reduction plants and electric arc furnaces. More than one million tons of green steel produced via this route is planned for 2026. By 2033, which is 12 years earlier than originally scheduled, the integrated steelworks are to have been fully aligned to the new world. Gunnar Groebler: “This is one of the biggest changes in the 150-year history of the Salzgitter Group. CO2 savings of 8 million tons a year are achievable, which corresponds to around one percent of Germany’s emissions. The key precondition is that policymakers now set the right economic and political framework conditions in place. This particularly applies to the topics of creating green leading markets, clarity in terms of funds to promote the transformation, and accelerating approval procedures.”
Strategic realignment will be accompanied and made visual by a groupwide brand relaunch. As part of this process, the corporate design has undergone a makeover, and Salzgitter AG is to be given an evolved logo as the most visual component of this extensive process. “Likewise, we have extended our company claim accordingly: “Salzgitter AG – Steel and Technology” is now “Salzgitter AG – People, Steel and Technology”. People will play a critical role in the aforementioned entrepreneurial transformation. People are the dynamic driver, ensuring implementation, and are therefore the key factor for success. This is why we place our employees, customers and partners center stage in everything we do. This aspiration now figures prominently in the group name,” as Chief Personnel Officer Michael Kieckbusch explained.