SHS Group secures billion-euro financing for climate-neutral steel production

The SHS Group together with its subsidiaries Dillinger and Saarstahl has successfully secured financing for its Power4Steel transformation project – one of Europe’s largest decarbonisation initiatives. The total financing package amounts to approximately EUR 1.7 billion, ensuring full funding for the entire duration of the investment project.

“This marks another key milestone on our path toward a low-carbon future,” said Stefan Rauber, CEO of SHS – Stahl-Holding-Saar. The financing was secured through a consortium of leading national and international banks and combines elements of corporate and investment financing. The investment component is supported by the export credit agencies OeKB (Austria) and SACE (Italy). Additional funding is provided through substantial equity contributions and direct financial support from the German Federal Government and the Saarland Regional Government under the EUR 2.6 billion programme for transforming the Saarland steel industry.
As part of the Power4Steel project, a new direct reduction plant and two electric arc furnaces are under construction at the Dillingen and Völklingen production sites. These will gradually replace the existing blast furnaces and converters. Hydrogen-based steelmaking will enable a significant reduction in CO₂ emissions, with levels expected to drop by around 55 % by 2030. Fully climate-neutral production is envisaged by 2045. In the long term, SHS aims to become the largest producer of green steel within its peer group.
Source: SHS Group