Salzgitter AG places first order for SALCOS® plant

24.08.2022 | Salzgitter AG

  • Primetals Technologies to build the first electric arc furnace in Salzgitter
  • Another important step towards low-CO2 steelmaking
  • Production scheduled to commence end of 2025 – annual capacity 1.9 million tonnes

Following the decision by the Salzgitter AG Supervisory Board in July to approve capital funding in the amount of € 723 million for SALCOS® - SAlzgitter Low CO2Steelmaking, the first order has now been placed for central plant components that will enable virtually CO2-free steel production in Salzgitter. On Tuesday, August 23, 2022, Salzgitter Flachstahl GmbH and Primetals Technologies signed a contract for the engineering, supply and erection of the first electric arc furnace (EAF) and the development of technical infrastructure in Salzgitter. The EAF is an a.c. module with three electrodes which has an annual capacity of around 1.9 million tonnes of crude steel. It will be capable of smelting sponge iron and steel scrap along with various additives in less than 50 minutes. The crude steel will then be refined using the existing plant, cast in slabs, rolled and processed. Plant assembly will commence at the end of 2024, once the technical infrastructure is in place. The scope of the order also extends to the necessary ancillary modules such as, for example, dust extraction units including heat recovery, water management, electrical compensation to stabilize the network, and material handling equipment for alloying agents and additives. Extensive digitization, robotics and other technology packages will be employed to ensure process stability at the new EAF. Production is slated to start at the end of 2025.
Ulrich Grethe, Head of Steel Production at Salzgitter AG, commented: “This step underscores our ambition through SALCOS® to retain our leadership in decarbonizing the steel industry and ensure that our plant here in Salzgitter is securely positioned for a long-term future. With Primetals we have a strong partner by our side – true to our Salzgitter AG 2030 strategy and to the principle of partnering for circular solutions.”
Aashish Gupta, Executive Vice President and Head of Upstream Business stated: “Primetals Technologies is delighted to support the decarbonization projects undertaken by Salzgitter AG through the use of our technology, in this case with the installation of a high-efficiency EAF. With our ‘Green Steel’ technology, we are making low-CO2 steel production a reality.”
The EAF and the ancillary modules will be fitted with sound insulation in order to securely comply with the permissible noise limits at the workplace and in the neighboring communities. The waste heat generated by the process will largely be converted into steam with the aid of heat recovery technology. This steam will then be fed into the “steelworks network” and reused in other parts of the works. The goal of SALCOS® is, in three stages between now and 2033, to convert the integrated steelworks entirely to low-CO2 crude steel production. As part of the transformation, two direct reduction plants and three electric arc furnaces will be built to successively replace the blast furnaces and converters. In this way the previous process based on coking coal will give way to a new water-based route to steelmaking. Anticipated savings are in the order of 95 % of annual CO2 emissions of around 8 million tonnes. That means that around 1 % of Germany’s emissions of CO2 can be avoided.

Contacts Salzgitter AG:

Thorsten Moellmann
Head of Corporate Communication/Group Spokesman
Telephone: +49 (0)5341 21 2300


Olaf Reinecke
Deputy Press Spokesperson
Telefon: +49 (0)5341 21-5350


Contact Primetals:

Björn Westin
Press Officer
Telephone: +43 664 6150250

Salzgitter AG is one of Germany’s leading steel and technology groups. As a pioneer in the Circular Economy, we are focused on sustainable innovation, and on transforming our products and processes in the steel production, steel processing, trading and technology business units. Pursuing our “Salzgitter AG 2030” strategy and based on the principle of “Pioneering for Circular Solutions”, we are setting new standards in the industrial arena. Our ambitions are becoming reality through powerful initiatives and programs such as SALCOS® - SAlzgitter Low CO2Steelmaking. Through partnerships and in networks, we are actively driving the further development processes forwards towards a Circular Economy. With around 25,000 employees worldwide active at 150 national and international subsidiaries and associate companies, we live up to our global aims for growth, profitability and our pioneering position. In financial year 2021, with a capacity of around 7 million tonnes of crude steel, we achieved external sales of around € 10 billion.
Further information: People, Steel and Technology | Salzgitter AG (
Primetals Technologies, Limited, with head office in London and international engineering and technology centers in Austria and Germany, among others, is a technology pioneer and a global leader in the field of engineering, plant construction and lifecycle services for the metals industry. The company’s complete portfolio of technology, products and services includes holistic solutions for electrical systems, automation, digitization and environmental technology and covers every link in the iron and steel production value chain – from raw material to the finished product – as well as ultramodern rolling mill solutions for non-ferrous metals. Primetals Technologies is a joint venture by Mitsubishi Heavy Industries and partners and employs around 7,000 workers worldwide.
Further information: