Swiss Steel Group has announced plans to restructure its German subsidiary Deutsche Edelstahlwerke (DEW) over a period of approximately two years, including the concentration of steel production at the Witten plant, the temporary suspension of steelmaking in Siegen and the sale of its plants in Hagen and Krefeld.
According to the company, the restructuring program, known as DEW 2030, is part of its broader SSG 2030 strategy and aims to increase competitiveness over the long term amid declining demand for specialty steels, high energy costs, and increased import pressures.
The Swiss steel group stated that the European market for long products has declined significantly since 2021, and demand from the main consuming industries, especially the automotive industry and engineering, remains weak. As a result, the existing DEW production network was designed to increase production volumes and operates with insufficient capacity utilization.
Despite previous cost reductions, operational improvements, and staff reductions, DEW has not returned to operating profitability since 2022. The company stated that its current production volumes are insufficient to cover the fixed costs and finance the investments needed at its four production sites.
Witten will become DEW's main specialized steel production facility. центр
Under the restructuring plan, Witten will become DEW's main specialty steel center, specializing in the production of structural steel, stainless steel, and tool steel. The company plans to increase the volume of steel smelting in Witten, bringing its electric arc furnace and foundry production facilities closer to full capacity. Targeted investments are also planned to modernize the electric arc furnace and the continuous casting process of the operation. According to Swiss Steel Group, Witten can serve markets with higher profitability, including the civil aviation and defense industries, reducing its dependence on the automotive sector.
In the meantime, the rolling mill in Siegen will remain part of the DEW production network, while the steelmaking operations at the plant will be temporarily suspended, as production is concentrated in Witten.
It is planned to sell the plant in Hagen amid weakening demand for автомобили
Swiss Steel Group also announced plans to sell its plant in Hagen, citing structural market problems and significant investments needed to maintaining production activities. Between 2018 and 2025, sales at the Hagen plant more than halved, while production volumes lost after the July 2021 flood have not been restored. More than 70% of the plant's customers work in the automotive industry, where demand has grown. significantly weakened. The company said it intends to cease operations in Hagen if it fails to find a buyer in the coming months.
As for Krefeld, the company cited high prices as the reasons for the sale energy and production costs, insufficient capacity utilization, and significant reinvestment needs. If negotiations are unsuccessful, the company intends to stop working at the facility.
The restructuring will be carried out within two years. лет
Frank Koch, The CEO of Swiss Steel Group, stated that the restructuring is necessary to adapt DEW's operations to the smaller European steel market and ensure its long-term competitiveness. The company acknowledged that the changes will significantly affect employees and local communities in North Rhine-Westphalia.
DEW plans to hold talks with employees, company representatives will discuss social measures and explore the possibility of transferring funds between enterprises, where possible. The restructuring will be carried out in phases over approximately two years, with production transfers and investments coordinated to maintain product quality and supply reliability throughout the transition period.
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