German steel producer SHS Stahl-Holding-Saar Group (SHS Group) has signed contracts for the construction of a new direct-reduction iron (DR) plant and two electric-arc furnaces (EAFs). These facilities will have a combined capacity of 3.5 million tonnes per year of crude steel, converting 70% of the group’s total capacity to CO2-reduced production.
The DR plant will supply iron pellets to production sites in Dillingen and Völklingen, with the EAFs producing CO2-reduced steel from these pellets and steel scrap. The project, part of SHS Group’s Power4Steel initiative, aims to reduce CO2 emissions by 55% by the early 2030s. The total investment for the project is estimated at €4.6 billion, with €2.6 billion coming from federal and state funding. The new facilities are expected to be commissioned by 2028/29.
