Swiss Steel plans to sell its plants in Hagen and Krefeld
The company is also restructuring Deutsche Edelstahlwerke
The Swiss steel group Swiss Steel Group has announced plans to restructure its German subsidiary, Deutsche Edelstahlwerke (DEW). This is reported by SteelOrbis.
As part of the restructuring, the plant in Witten will become the main centre for the production of structural, stainless and tool steel. Thanks to the consolidation of steelmaking capacity, the electric arc furnaces and continuous casting lines in Witten will operate at near full capacity. This will enable the company to focus on highly profitable markets, including civil aviation and the defence industry, and reduce its dependence on the automotive sector.
At the same time, steelmaking operations in Siegen will be temporarily suspended, although the rolling mill will remain part of the network.
Due to falling sales volumes (more than halved between 2018 and 2025) and the aftermath of the 2021 floods, Swiss Steel plans to sell its plant in Hagen. Over 70% of its customers are in the automotive industry, where demand has fallen significantly. If a buyer is not found in the coming months, operations at the site will cease. The plant in Krefeld has also been put up for sale due to high costs and underutilisation.
The programme, known as DEW 2030, which forms part of the overall SSG 2030 strategy, is scheduled to run for approximately two years. Its aim is to enhance the company’s long-term competitiveness against a backdrop of falling demand for special steels, high energy costs and growing pressure from imports.
According to the company, the European market for round bar has contracted significantly since 2021, whilst demand from key sectors, notably the automotive and engineering industries, remains weak. As a result, DEW’s production capacity is operating below capacity. Despite cost optimisation and staff reductions implemented since 2022, the company has not managed to return to operational profitability.
As reported by GMK Center, Swiss Steel had previously announced the next phase of its restructuring programme against a backdrop of significant financial losses. These measures will affect production sites in Germany.
