Salzgitter has acquired Thyrolf & Uhle, a German company specializing in the manufacture of ballistic missile defense components, as Germany's second-largest steel producer seeks to expand its presence in Europe's growing defense sector.
The deal, which was announced on February 11, gives Salzgitter access to Thyrolf & Uhle's expertise in processing high-quality steels, including grades 400, 450, 500 and 600, used in the manufacture of military equipment and infrastructure protection, the German steel manufacturer said in a statement.
Thyrolf & Uhle, based in Dessau—Rosslau and employing about 100 employees, processes more than 12,000 metric tons of steel per year at its facility and holds key certificates for the production of ballistic protection components in accordance with German military standards TL-2350-0000 and DIN 2303 Q3 BK.
This acquisition allows Salzgitter to meet the growing demand for armored steel components as European countries increase defense budgets, the company said in a statement.
"This acquisition marks a further step in our active portfolio management, involving targeted acquisitions in growing markets," said Gunnar Grobler, CEO of Salzgitter AG. "Germany and Europe need an efficient defense industry with a qualified material base to withstand geopolitical shocks. It is in this direction that we, as Salzgitter AG, are expanding our offerings," Grobler added.
Germany has announced plans to significantly increase military spending after Russia's invasion of Ukraine in 2022, which will increase demand for specialized steel products used in military equipment and protective infrastructure.
Thyrolf & Uhle has been engaged in steel processing since 1859, providing services for the manufacture of steel structures, components and sheet metal processing. The company supplies steel components for both civilian and military equipment throughout Germany and Europe.
The financial terms of the transaction were not disclosed, provided that the agreed closing conditions are met, in particular, official approval is obtained.
On February 10, the Platts agency, part of S&P Global Energy, estimated the domestic hot-rolled roll in Northern Europe at 650 euros per ton at the Ruhr plant, stable from day to day.
Author: Annalisa Villa
