German steelmaker Salzgitter AG has ended takeover talks with a bidding consortium comprising GP Gunter Papenburg AG and TSR Recycling GmbH & Co. KG, citing significant differences over the company’s current and future valuation.
Salzgitter confirmed it will remain an independent company and continue pursuing its strategic transformation, anchored in technological innovation and long-term sustainability. The company is advancing its SALCOS program, which aims to shift steel production to hydrogen-based processes and achieve nearly carbon-free output by 2033. The first phase of SALCOS involves a EUR 2.3 bln (UDS 2.61 bln) investment, structured modularly to align with market developments.
To enhance efficiency and competitiveness, Salzgitter has expanded its cost-saving initiative. The original “Performance 2026” program has evolved into “P28”, targeting EUR 500 mln (USD 568 mln) in savings, EUR 130 mln (UD 148 mln) of which had already been achieved by the end of 2024.
The company is also implementing strategic measures to improve business unit performance, including a newly established taskforce to serve the growing defense sector. Salzgitter’s pipeline production capabilities position it strongly for future infrastructure projects involving natural gas, hydrogen, and CO2. Upcoming German government policies on climate, infrastructure, and defense are expected to further support the company’s outlook.
Portfolio optimization remains a key focus. Following the successful sale of Mannesmann Stainless Tubes Group in 2024, Salzgitter is continuously evaluating its business units to ensure each asset contributes to long-term strategic value.
CEO Gunnar Groebler emphasized that all initiatives aim to strengthen Salzgitter’s competitive position, accelerate its transformation, and create lasting value for shareholders, customers, and employees.
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