Stahl-Holding-Saar (SHS) reported on the progress of the Power4Steel project, which involves the transformation of steel production in Dillingen and Felklingen.
The company spoke about the latest work during a visit to the plant in Dillingen by German Chancellor Friedrich Merz and Saarland Prime Minister Anke Relinger. During the trip, the Y-SIC silicon carbide project was also presented, in which SHS participates as an industrial partner.
According to SHS, it is planned to allocate 4.6 billion euros for the modernization of production sites in Dillingen and Felklingen. The German Federal Government and the Saarland will provide a total of 2.6 billion euros in support. About 120 facilities will be built at two sites as part of the project. The first one is already ready.
After the preparatory work and the foundation, the construction of the aboveground part of the new production began. One of the key elements will be a DRI installation with a height of about 140 meters, which will be built in Dillingen. It will play an important role in the new technological process.
Peter Maag, SHS Board Member for Technology and Production, noted that the company is simultaneously building a new production infrastructure and continuing to operate at existing facilities.
Jonathan Weber, Member of the Management Board for Finance and Transformation, stressed that the project is not limited to launching new facilities. According to him, it requires changes in the raw materials and energy base, production processes, IT systems and cost structure.
"Power4Steel needs to provide customers with low—CO2 steel supplies and keep the company competitive in the long run," Weber said.
At the meeting, SHS also presented the Y-SIC initiative aimed at producing high-purity silicon carbide for the semiconductor industry. In the project, SHS and Saarland act as industrial partners. With the support of financing, the initiative expects to create the first industrial production of silicon carbide at the Dillinger site.
The company said that Y-SIC has developed a new technological process for the continuous industrial production of silicon carbide powder. The project should help establish a competitive production of this material in Europe.
Stefan Rauber, CEO of SHS, stated that if Power4Steel forms the infrastructure for the transformation of steel production, then Y-SIC opens up a new direction of development for the group.