German steel plate producer Dillinger Group and Germany-based long steel producer Saarstahl Group have announced their financial results for 2020.
Dillinger reported net sales revenue of €1.64 billion ($1.94 billion) in 2020, compared to €2.08 billion in 2019. The company’s negative EBITDA in the given year amounted to €68.9 million ($81.49 million) in 2020, compared to an EBITDA of €8.5 million recorded in 2019. Saarstahl reported net sales revenue of €1.68 billion ($1.99 billion) in 2020, compared to €2.20 billion in 2019. The company’s negative EBITDA in the given year amounted to €70.4 million ($83.26 million), compared to a negative EBITDA of €18.5 million recorded in 2019.
In the given year, Dillinger’s crude steel production totaled 1.82 million mt, falling by 18.7 percent year on year. In the same year, the company’s heavy plate production decreased by 23.8 percent to 1.40 million mt, while its heavy plate sales went down by 24.6 percent to 1.41 million mt, both compared to the previous year. In 2020, Saarstahl’s crude steel production totaled 1.88 million mt, falling by 17.5 percent year on year. In the same year, the company’s rolled steel production decreased by 17.3 percent to 1.67 million mt, while its total sales went down by 17.8 percent to 1.75 million mt, both compared to the previous year.
“The coronavirus pandemic further exacerbated the already strained situation during the course of the year and led to a collapse in demand over the year, first at Saarstahl and, somewhat later, at Dillinger. For many months, we operated our production based on current conditions. Due to the high losses at both companies in the 2020 financial year, pressure to implement the recession-related cost-cutting program has intensified even further: we need to accelerate implementation of the program and accomplish the turnaround quickly, effectively and permanently,” Karl Ulrich Köhler, chairman of the board and CFO of Saarstahl and Dillinger, commented on the 2020 financial year.
Dillinger and Saarstahl started 2021 with a considerably improved order situation and the companies anticipate an overall recovery in business activity and an improved earnings situation. Both companies reported a significant recovery in demand at the beginning of the year. The companies want to lead the market in their segments and close gaps in their product portfolio to occupy new market areas.
According to the companies’ statements, Dillinger and Saarstahl are continuing to work strategically toward the goal of carbon-neutral steel production. Until the political conditions for profitable production of carbon-neutral steel are in place, Dillinger and Saarstahl will be pursuing an intensified reduction strategy. The efficiency limits of decarbonization on the existing blast furnace route will meanwhile be further explored and improved.