Swiss Steel Group has announced plans to restructure its German subsidiary Deutsche Edelstahlwerke (DEW) over approximately two years, including concentrating steel production at its Witten facility, temporarily suspending steelmaking operations in Siegen and pursuing the sale of its Hagen and Krefeld plants.
According to the company, the restructuring program, known as DEW 2030, forms part of its broader SSG 2030 strategy and aims to improve long-term competitiveness amid declining demand for specialty steel, high energy costs and increasing import pressure.
Swiss Steel Group stated that the European long steel market has contracted significantly since 2021, while demand from major consuming sectors, particularly automotive and mechanical engineering, remains weak. As a result, DEW's existing production network, which was designed for higher output volumes, is operating at insufficient capacity utilization levels.
Despite previous cost reductions, operational improvements and workforce reductions since 2022, DEW has not returned to operating profitability. The company stated that its current production volumes are insufficient to cover fixed costs and finance the investments required across its four sites.
Witten to become DEW's main specialty steel production center
Under the restructuring plan, Witten will become DEW's main specialty steel production and competence center, covering engineering steel, stainless steel and tool steel. The company plans to consolidate steelmaking volumes at Witten, bringing its electric arc furnace and casting facilities close to full capacity utilization. Targeted investments are also planned to improve the site's electric arc furnace and continuous casting operations. According to Swiss Steel Group, Witten is positioned to serve higher-margin markets, including civil aviation and defense, reducing its dependence on the automotive sector.
Meanwhile, the Siegen rolling mill will remain part of DEW's production network, while steelmaking operations at the site will be temporarily suspended as production is concentrated in Witten.
Sale of Hagen plant planned amid weakening automotive demand
Swiss Steel Group also announced plans to sell its Hagen facility, citing structural market challenges and the substantial investments required to maintain operations. At Hagen, sales volumes more than halved between 2018 and 2025, while production volumes lost following the July 2021 floods have not been recovered. More than 70 percent of the plant's customers operate in the automotive industry, where demand has weakened significantly. The company stated that it intends to cease operations at Hagen if a buyer cannot be found in the coming months.
Regarding Krefeld, the company cited high energy and production costs, insufficient capacity utilization and substantial reinvestment requirements as reasons for pursuing a sale. If negotiations are unsuccessful, the company intends to discontinue operations at the facility.
Restructuring to be implemented over two years
Frank Koch, CEO of Swiss Steel Group, stated that the restructuring is necessary to adapt DEW's operations to the structurally smaller European steel market and secure its long-term competitiveness. The company acknowledged that the changes will significantly affect employees and local communities in North Rhine-Westphalia.
DEW plans to negotiate with employee representatives regarding social measures and examine opportunities for transfers between its facilities where possible. The restructuring will be implemented in stages over approximately two years, with production transfers and investments coordinated to maintain product quality and delivery reliability throughout the transition.
