Salzgitter AG launches transformation of HKM with Germany's largest electric arc furnace

• Salzgitter subsidiary HKM is signing a contract with Tenova for the engineering, delivery, and installation of an electric arc furnace in Duisburg
• Germany's largest electric arc furnace, featuring a capacity of up to 2.5 million metric tons
• This represents a significant step towards decarbonizing steel production as part of the Salzgitter Group’s transformation strategy
• The implementation phase will begin as early as August 2026 – completion is scheduled for 2029

Salzgitter AG has set the transformation of its Duisburg site in motion by awarding a contract for a central facility for future low-CO₂ steel production. The Group subsidiary Hüttenwerke Krupp-Mannesmann GmbH (HKM), which was recently acquired in its entirety, and Tenova have entered into an agreement on July 28, 2026, regarding the delivery, installation, and joint commissioning of an electric arc furnace as well as essential technical auxiliary facilities.

Boasting a tapping weight of 285 metric tons and a capacity of up to 2.5 million metric tons, the facility will rank as the largest electric arc furnace in Germany and the second-largest in the European Union. The planned production target is approximately 2 million metric tons. The project is receiving €200 million in funding from the federal government and the state of North Rhine-Westphalia as part of the “Federal Funding for Industry and Climate Action” program. This funding underscores the project’s significance in terms of industrial and climate policies geared to the transformation of steel production in Germany and North Rhine-Westphalia. Immediately after the contract has been awarded, the project will enter the implementation phase in August 2026. The electric arc furnace is scheduled to be completed in 2029.

Gunnar Groebler, Chairman of the Executive Board of Salzgitter AG:

"With the construction of the electric arc furnace, HKM will be directly integrated into the Salzgitter Group’s transformation strategy towards low-carbon steel production. With this step, we are reaffirming the future perspectives of the Duisburg site, while continuing to develop vital industrial expertise in Germany. As the swift awarding of the contract demonstrates: We are resolutely implementing our strategy and are now moving forward rapidly and specifically with the decarbonization of steel production in Duisburg on the construction site. With the electric arc furnace, we are laying the foundation for sustainable and competitive steel production at HKM and strengthening our position as a leading supplier of green steel for industrial value chains."

Andreas Betzler, spokesperson for HKM's management:

"The awarding of the contract for the electric arc furnace represents a significant milestone for HKM and for the future of our site. This step is based on a highly intensive procurement process in which numerous colleagues worked with great dedication, in-depth expertise, and a high degree of reliability. Funding from the federal government and the state of North Rhine-Westphalia also sends an important signal in terms of Germany’s industrial transformation. Now we're moving forward with implementation without any further delay."

Dr. Markus Dorndorf, Managing Director of Tenova Projects GmbH:

"We are very pleased with the trust HKM and Salzgitter AG have placed in us. By leveraging our proven technologies and extensive experience in delivering large-scale metallurgical plants, we are confident we will make a significant contribution to the success of this project. The electric arc furnace at HKM will be the most powerful and energy-efficient in Germany, while the adoption of this advanced technology marks one of the most significant transformation projects in the European steel industry, demonstrating that industrial competitiveness and decarbonization can successfully go hand in hand."

The new electric arc furnace is equipped with Consteel® technology. Scrap is fed into the system continuously by way of a conveyor belt system. In addition, the exhaust heat is used to preheat scrap metal, thereby ensuring exceptionally high energy efficiency. At the same time, the continuous feed of material raises productivity and improves the plant’s grid compatibility, as it results in significantly lower load peaks by comparison with conventional electric arc furnaces with scrap basket charging. The plant can be flexibly fed with a variety of raw materials, such as sponge iron (DRI/HBI) and steel scrap, across a wide range, thereby enabling the production of a very extensive range of steel grades.

In addition to the electric arc furnace, the scope of the contract includes key auxiliary systems required for the operation of a continuously fed furnace. These include, in particular, the conveyor belt-fed scrap supply system, the furnace transformer for supplying electrical power to the melting process, the water management system for cooling the furnace, a transformer, and other plant components, and the exhaust gas treatment system for capturing and purifying the process gases.

This project marks the implementation of another key component in the transformation of steel production within the Salzgitter Group. The full integration of HKM into the Group, the swift decision-making by the relevant bodies, and the recent awarding of the contract underscore the Group’s ability to take decisive action in the implementation of its decarbonization strategy.