German Economy Minister visits Salzgitter’s SALCOS green steel project

German Federal Minister for Economic Affairs Katherina Reiche visited Salzgitter AG’s steelworks during her summer tour of German industry, where she reviewed progress on the company’s SALCOS (Salzgitter Low CO₂ Steelmaking) transformation project aimed at decarbonizing steel production with green hydrogen.

Accompanied by Salzgitter CEO Gunnar Groebler and Salzgitter Flachstahl Managing Director Heike Denecke-Arnold, the minister toured the SALCOS construction site and received an update on the company’s transition toward low-carbon steel production. The visit also included representatives from the Lower Saxony state government, parliament and the company’s works council.

Reiche praised Salzgitter’s role in advancing Germany’s industrial transformation, highlighting the cooperation between government and industry while emphasizing the steel sector’s importance to economic resilience.

Groebler welcomed the minister’s visit and thanked the federal and Lower Saxony governments for supporting the project. He also called for stable regulatory frameworks and competitive energy prices to ensure the long-term competitiveness of Germany’s energy-intensive steel industry.

The SALCOS program has received €1.3 billion in funding from the German federal government and the state of Lower Saxony. The project aims to make steel production at Salzgitter largely CO₂-neutral by replacing conventional processes with hydrogen-based steelmaking. The first phase of the project is scheduled for completion in 2027, with the company’s first deliveries of green steel expected next year.