German steel makers Dillinger Group with its subsidiaries and the Saarstahl Group have achieved a successful financial year in 2021. After two difficult years marked by the pandemic in 2019 and 2020, a significant recovery in the market was experienced. After years of high losses, the companies achieved the targeted turnaround and closed 2021 with decidedly positive results. Net sales increased significantly: in the Dillinger Group from EUR 1.645 billion to EUR 2.281 billion and in the Saarstahl Group from EUR 1.684 billion to EUR 2.777 billion. Dillinger Group closed the financial year with an EBITDA of EUR 201.1 million and an EBIT of EUR 80.1 million. The Saarstahl Group recorded an EBITDA of EUR 281.5 million and an EBIT of EU 187.9 million.-------------------Dillinger Group-------------------Purchases of hot metal - 1,981 KT, up by 27% YoYCrude steel production - 2,281 KT, up by 26% YoYHeavy plate production - 1,782 KT, up by 27% YoY- of which in Dillingen - 1,237 KT, up by 24% YoY- of which in Dunkirk Dillinger France – 545 KT, up by 34% YoYShipment of heavy plate steel - 1,659 KT, up by 20% YoY--------------------Saarstahl Group--------------------Purchases of hot metal - 2,280 KT, up by 40% YoYCrude steel production - 2,638 KT, up by 40% YoYRolled steel production - 2,430 KT, up by 46% YoYShipment - 2,418 KT, up by 38% YoYThe acquisition of Saarstahl Rail and Saarstahl Ascoval by SHS Saarstahl from Liberty Steel in August 2021 has enabled the Group to close gaps in the product portfolio and occupy new market segments. Saarstahl Ascoval’s carbon-reduced steel and the electric arc furnace installed there has already enabled the company to offer customers steel produced with a climate-compatible method as the basis for their products and value chains. With the rails from Saarstahl Rail, we are helping drive the mobility revolution through production of premium rails – also using carbon-reduced steel from Ascoval. Customers such as SNCF and other operators already depend on the rails from Lorraine.Dillinger and Saarstahl profited from the strong economy and increased demand from the automotive, energy and mechanical engineering sectors. The high demand led to positive price development in the individual segments. This trend was already apparent for Saarstahl wire rod and bar steel in the final months of 2020 and continued steadily in 2021. This development is primarily due to the restart of production in the automotive industry. At Dillinger, the recovery began in the first half of 2021. The driver here was steadily increasing demand for super heavy plate from the offshore wind sector. Demand from other core consumer segments, such as mechanical engineering, steel construction and trade, also continued to rise. Only demand from the line pipe sector continued to decline in 2021. Adapting and making the operating points of Dillinger and Saarstahl more flexible created an effective instrument for controlling and quickly adapting production to changes in the market.The investments of Dillinger and Saarstahl in 2021 were influenced by the overall pandemic conditions. Even so, the planned projects were successfully completed. In addition to investing in several new cranes at the LD steel plant in Völklingen and the Burbach rolling mill, investments were made in measures to protect the environment and lower carbon emissions. In the area of Zentralkokerei Saar GmbH, for example, the high-pressure coke gas scrubbing system was commissioned and the circular cooler dedusting system with heat recovery at sinter plant 3 (investment EUR 28 million) of ROGESA Roheisengesellschaft Saar, a joint subsidiary of Dillinger and Saarstahl, was completed with the final inspection in September 2021.The cost-cutting program initiated in 2019 was implemented quickly and effectively as announced and achieved the defined targets. The final measures of the program will be completed in 2022.Outlook for 2022 - The Dillinger Group and Saarstahl Group started the new financial year with good demand and continued high margins. The companies continue to expect good capacity utilization in 2022. However, Russia's attack on Ukraine and the resulting war and its consequences may cause a massive slowdown in economic development and have an impact on businesses. The coronavirus may also continue to influence the economy. Due to this situation, further significant price increases in raw material procurement and energy costs are to be expected. The integration and strategic alignment of Saarstahl Rail and Saarstahl Ascoval is being expedited and new market segments are being developed. Dillinger will continue to invest in the growing offshore wind segment and is expanding production of super heavy plate for this market.
German steel makers Dillinger Group with its subsidiaries and the Saarstahl Group have achieved a successful financial year in 2021. After two difficult years marked by the pandemic in 2019 and 2020, a significant recovery in the market was experienced. After years of high losses, the companies achieved the targeted turnaround and closed 2021 with decidedly positive results. Net sales increased significantly: in the Dillinger Group from EUR 1.645 billion to EUR 2.281 billion and in the Saarstahl Group from EUR 1.684 billion to EUR 2.777 billion. Dillinger Group closed the financial year with an EBITDA of EUR 201.1 million and an EBIT of EUR 80.1 million. The Saarstahl Group recorded an EBITDA of EUR 281.5 million and an EBIT of EU 187.9 million.-------------------Dillinger Group-------------------Purchases of hot metal - 1,981 KT, up by 27% YoYCrude steel production - 2,281 KT, up by 26% YoYHeavy plate production - 1,782 KT, up by 27% YoY- of which in Dillingen - 1,237 KT, up by 24% YoY- of which in Dunkirk Dillinger France – 545 KT, up by 34% YoYShipment of heavy plate steel - 1,659 KT, up by 20% YoY--------------------Saarstahl Group--------------------Purchases of hot metal - 2,280 KT, up by 40% YoYCrude steel production - 2,638 KT, up by 40% YoYRolled steel production - 2,430 KT, up by 46% YoYShipment - 2,418 KT, up by 38% YoYThe acquisition of Saarstahl Rail and Saarstahl Ascoval by SHS Saarstahl from Liberty Steel in August 2021 has enabled the Group to close gaps in the product portfolio and occupy new market segments. Saarstahl Ascoval’s carbon-reduced steel and the electric arc furnace installed there has already enabled the company to offer customers steel produced with a climate-compatible method as the basis for their products and value chains. With the rails from Saarstahl Rail, we are helping drive the mobility revolution through production of premium rails – also using carbon-reduced steel from Ascoval. Customers such as SNCF and other operators already depend on the rails from Lorraine.Dillinger and Saarstahl profited from the strong economy and increased demand from the automotive, energy and mechanical engineering sectors. The high demand led to positive price development in the individual segments. This trend was already apparent for Saarstahl wire rod and bar steel in the final months of 2020 and continued steadily in 2021. This development is primarily due to the restart of production in the automotive industry. At Dillinger, the recovery began in the first half of 2021. The driver here was steadily increasing demand for super heavy plate from the offshore wind sector. Demand from other core consumer segments, such as mechanical engineering, steel construction and trade, also continued to rise. Only demand from the line pipe sector continued to decline in 2021. Adapting and making the operating points of Dillinger and Saarstahl more flexible created an effective instrument for controlling and quickly adapting production to changes in the market.The investments of Dillinger and Saarstahl in 2021 were influenced by the overall pandemic conditions. Even so, the planned projects were successfully completed. In addition to investing in several new cranes at the LD steel plant in Völklingen and the Burbach rolling mill, investments were made in measures to protect the environment and lower carbon emissions. In the area of Zentralkokerei Saar GmbH, for example, the high-pressure coke gas scrubbing system was commissioned and the circular cooler dedusting system with heat recovery at sinter plant 3 (investment EUR 28 million) of ROGESA Roheisengesellschaft Saar, a joint subsidiary of Dillinger and Saarstahl, was completed with the final inspection in September 2021.The cost-cutting program initiated in 2019 was implemented quickly and effectively as announced and achieved the defined targets. The final measures of the program will be completed in 2022.Outlook for 2022 - The Dillinger Group and Saarstahl Group started the new financial year with good demand and continued high margins. The companies continue to expect good capacity utilization in 2022. However, Russia's attack on Ukraine and the resulting war and its consequences may cause a massive slowdown in economic development and have an impact on businesses. The coronavirus may also continue to influence the economy. Due to this situation, further significant price increases in raw material procurement and energy costs are to be expected. The integration and strategic alignment of Saarstahl Rail and Saarstahl Ascoval is being expedited and new market segments are being developed. Dillinger will continue to invest in the growing offshore wind segment and is expanding production of super heavy plate for this market.
