The Stahl-Holding-Saar (SHS) Group, which owns Dillinger and Saarstahl, completed the financing of the Power4Steel project in 2025. The project aims to transform steel production at both companies toward lower-carbon technologies.
EUR 1.7 billion financing secured for Power4Steel
As of September 29, 2025, the SHS Group had secured EUR 1.7 billion in green financing for the Power4Steel project. The funding, provided by a consortium of national and international banks, represents a significant part of the project's financing structure.
The financing will be combined with EUR 2.6 billion in public funding approved by the German federal government and the state government, as well as the company's own funds.
Construction of a direct reduction (DRI) plant and electric arc furnaces (EAFs) is underway at the Dillingen and Völklingen sites. The company aims to begin supplying customers with low-carbon steel products from 2028–2029 once the new facilities are operational.
As part of the project, the SHS Group plans to reduce carbon emissions by 55% by the early 2030s and achieve CO₂-neutral production by 2045 at the latest.
Sales revenue falls 4.5%
Dillinger's sales revenue fell 4.5% year on year to EUR 2.183 billion in 2025. EBITDA stood at EUR 271 million, while EBIT amounted to EUR 218 million.
Net profit reached EUR 216 million, down from EUR 272 million in 2024.
In 2025, planned maintenance work at Blast Furnace 4 operated by ROGESA resulted in a 17.1% decline in pig iron production and a 17.7% decrease in liquid steel production.
Despite this, strong orders, particularly for linepipe steel, and operational flexibility supported a 4.3% increase in total product shipments to 1.633 million tonnes.
Company achieves more than EUR 100 million in savings
In response to weak demand and rising cost pressures, Dillinger launched the "Zukunftsprogramm DH" cost reduction program in May 2025.
By the end of the year, the company had implemented structural and one-off measures generating more than EUR 100 million in savings.
Management changes
Dillinger's Supervisory Board Chairman Reinhard Störmer stepped down on September 12, 2025. He was succeeded by former German Federal Minister Heiko Maas.
Meanwhile, Markus Lauer, who was responsible for Finance and Procurement on the company's Management Board, left his position on December 31, 2025.
From January 1, 2026, the company combined its finance and green transformation activities under a new "Finance and Transformation" division. Responsibility for the division was transferred to Jonathan Weber.
Limited increase in profitability expected in 2026
Dillinger does not expect a rapid recovery in the steel market in 2026 and anticipates order volumes to remain broadly stable.
The company expects the impact of its cost-saving program to become more pronounced throughout the year and, together with improved capacity utilization, forecasts slightly higher EBIT and EBITDA in 2026 compared with 2025.
Dillinger also expects the introduction of CBAM and the EU's trade protection measures against imports to support pricing and competitive conditions in the European steel market.
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