Salzgitter AG

Salzgitter Flachstahl, a subsidiary of German steel manufacturer Salzgitter, and renewable energy company Zelestra have signed a hybrid solar-plus-battery storage power purchase agreement in Germany. The long-term contract supplies green electricity for low-carbon steel production and is backed by two new hybrid facilities that together provide 147MW of solar capacity and 79MW/237MW-hours of battery storage. The two plants, to be located in Brandenburg and Thuringia, will be constructed, owned and operated by Zelestra, while Salzgitter Flachstahl will acquire the solar electricity generated, amounting to 158GW-hours annually, and will control the operation of the battery storage systems. The batteries will be charged solely from surplus solar generation, ensuring the electricity supplied is entirely renewable. The deal marks the first hybrid solar-plus-storage PPA in Germany for both companies and the first time Salzgitter Flachstahl will control a battery storage system, with Zelestra Germany CEO Mathias Künick calling it the largest hybrid deal in Germany to date.

Salzgitter AG reported a significant year-on-year earnings improvement across all segments in the first half of 2026, driven by cost reductions and restructuring efforts. Revenue was EUR4.6 billion, a 1.6% decrease year-over-year, while adjusted pre-tax result reached EUR258 million and net income after taxes was EUR43 million. The company's P28 performance program achieved EUR97 million in the first half, already 80% of its full-year target of EUR122 million. Salzgitter also completed the acquisition of 100% of HKM, which is expected to contribute positively to revenue and earnings from the second half of 2026, with a manageable net cash outflow of only EUR100 million over the next three years. Full-year 2026 guidance includes sales up to EUR10 billion, EBITDA between EUR725 million and EUR825 million, and pre-tax result between EUR325 million and EUR425 million.

Salzgitter AG has reached a final agreement to acquire full ownership of Hüttenwerke Krupp Mannesmann, making the integrated steelworks a wholly owned subsidiary. The deal follows the decision of co-shareholders thyssenkrupp Steel Europe and Vallourec to exit the joint venture, with contracts signed on July 8 and closing expected later today. Salzgitter plans to invest in an electric arc furnace at the Duisburg site to cut CO2 emissions by 90 percent long-term, but the transition will reduce the workforce from about 3,000 to roughly 1,000 and lower crude steel output to two million metric tons per year. CEO Gunnar Groebler said the acquisition secures a future for the historic site through a green transformation, while thyssenkrupp Steel's supply contract with HKM will now expire at the end of 2028 instead of 2032. The financial impact on Salzgitter's 2026 forecast will be detailed in its half-year report on August 11, 2026.