EQS-News: Salzgitter AG to remain independent

• Executive Board ends talks with bidding consortium regarding potential takeover
• Significant differences regarding current and future value of the company
• Close alignment with stakeholders on self-driven transformation
• Expanded performance program P28 launched with savings target of € 500 million
• Positive impact expected from the incoming German government's economic policy measures in the areas of climate protection, infrastructure, and defense
• Portfolio development in line with the best-owner principle will be continued

After having conducted comprehensive analysis, the Executive Board of Salzgitter AG has today taken the decision to end discussions with the consortium of GP Günter Papenburg AG and TSR Recycling GmbH & Co. KG regarding a potential takeover offer. The decision was made based on significantly differing views on the current and future value of Salzgitter AG.

“Salzgitter AG will remain an independent company. Backed by the combination of technological strength, entrepreneurial responsibility and decades of expertise, we will continue to drive our transformation forward. To this end, we laid important groundwork last year. Under our expanded P28 performance program we launched additional measures to strengthen our competitiveness and ensure long-term prospects for our employees” said Gunnar Groebler, CEO of Salzgitter AG.

Strength in pioneering the steel industry

“We firmly believe in the future of Salzgitter AG. That is why we are rigorously pursuing our path of independence in close collaboration with our stakeholders. Together, we trust in our strength as pioneer in the transformation of the entire steel industry,” Groebler continued.

The core of this transformation is SALCOS®, which aims to gradually shift the Group’s steel production to hydrogen-based processes, targeting nearly carbon-free steel production by 2033. The first expansion stage involves an investment volume of approximately € 2.3 billion. The modular structure of SALCOS® enables Salzgitter AG to make the right decisions at the right time in a controlled manner and in line with market developments.

Cost reduction and earnings improvement in equal measure

At the same time, Salzgitter AG is leveraging various strategic adjustments to continue its path toward cost reduction. The current performance program “Performance 2026” has been expanded. Instead of € 250 million, the successor program P28 now targets € 500 million in savings with approximately € 130 million already realized by the end of 2024.

Further specific measures have been initiated to sustainably improve the results of the business units. A dedicated defense taskforce is actively addressing the needs of customers in the growing defense sector and has received strong interest. Furthermore, Salzgitter AG is well-positioned for future infrastructure projects with its expertise in producing pipelines for natural gas, hydrogen, and CO₂. It can also be assumed that the incoming German government's planned economic policy measures in the areas of climate protection, infrastructure, and defense will have a positive impact in the coming years.

Portfolio measures subject to continuous review

Portfolio development in line with the best owner principle is firmly established in the company.

For example, the sale of Mannesmann Stainless Tubes Group was successfully concluded last year. The Executive Board is reviewing further portfolio measures on an ongoing basis.

In conclusion, Gunnar Groebler, CEO of Salzgitter AG, states: “The aim of all these activities is to ensure the best possible positioning for Salzgitter AG in the competitive arena, to continue the transformation we have successfully begun, and to generate long-term value for our shareholders, customers, and employees.”

 

Contact:
Markus Heidler

Head of Investor Relations

Salzgitter AG
Eisenhüttenstraße 99
38239 Salzgitter

Phone +49 5341 21-6105
Fax +49 5341 21-2570
E-Mail ir@salzgitter-ag.de