Page 6 - Best of 2019 English

“SALCOS® positions Salzgitter AG a pioneer
of decarbonization in the steel industry” Interview with Prof. Heinz Jörg Fuhrmann, CEO of Salzgitter AG
STIL spoke with CEO Prof. Heinz Jörg Fuhrmann about storms on the economic horizon, the orientation of medium-sized companies and the decarbonization of the
industry.
STIL: In last year's interview you predicted that the economy would pass through a “bad weather zone”. How bad was the turbulence?
Prof. Fuhrmann: How badly you are shaken de- pends largely on your own constitution and prepa- ration. The economic slowdown has of course impacted on our business units to varying degrees. Among other things, this includes the decline in production among automotive customers, ongoing
high steel import volumes to the EU market and an environmental policy that has not yet estab- lished clearly what framework conditions it will lay down for the economy in the future. Added to this are further uncertainties due to international trade disputes and, most recently, the indirect conse- quences of the corona virus.
Our reported result for the 2019 financial year was not exactly pleasing, but if we exclude the negative one-off effects, we achieved a present- able positive operating result. Incidentally, others publish so-called adjusted results in their commu- nication as a matter of principle.
The fact is: compared with many of our com- petitors, we’re still sound in terms of our finances and balance sheet – not just due to our sustainable, conservative business policy but also thanks to the broad diversification of our customer industries.
The strategic decision to strive for a balance between our steel-related and our non-steel-related activities has once again proved effective. Never- theless, there is no reason for passive complacency: we will continue to improve our structures and processes, since this is an absolute necessity. In conjunction with our sound balance sheet and
the CO2 certificates acquired as a precautionary measure for the fourth period of the European Emissions Trading Scheme starting on 1 January 2021, this endows us with the confidence that we are well prepared.
STIL: You mentioned the high volume of imports to the EU market and the dispute over tariffs in world trade. Do we have any influence on this as an individual company?
Prof. Fuhrmann: Well, we do what we can. With regard to the safeguard measures against trade diversion as a result of the US tariffs on steel: together with the German Steel Federation and EUROFER we are pushing for an improvement on the part of the EU because the current form
of the safeguards has proven to be largely ineffec- tive – nobody seriously doubts that. The new EU Commission with Phil Hogan as Trade Commis- sioner must now show that it can live up to its self-imposed claim to effectively protect European companies from unfair trading practices and en- force compliance with international treaties.
On the subject of customs duties: China and the USA have reached an initial agreement and renounced any further reciprocal trade barriers. One can only hope this will set an initial phase of détente in world trade in motion. Europe ought to
An important element of the SALCOS® project is an intensive dialog with politicians: Minister President Stephan Weil (2nd from right) is seen here on the fringe of the Lower Saxony Summer Festival in Berlin in conversation with Professor Fuhrmann (right) and the two project managers Dr. Alexander Redenius (left) and Dr. Volker Hille
6 SALZGITTER INSIDE
Photo: Kai-Uwe Knoth