Dillinger and Saarstahl encountered improved orders in Q1 2021 with the company expecting an overall recovery in the steel business activity and increased earnings during the year.
The companies did not mention specific targets in their statement on Mar 23 but said that they have targeted cost savings of €250mn ($295.29mn) for 2021 with material costs accounting for 60pc and personnel measures the other 40pc. Around 90pc of the defined €150mn target in material-cost management has been backed by internal measures.
Dillinger and Saarstahl are pursuing an intensified carbon footprint reduction strategy with the goal of carbon-neutral steel production. The steelmakers noted that for now, the full investments necessary are not feasible within the present cost structure or political framework.
The Dillinger Group’s crude steel production fell by 18.9pc to 1.8mn mt in 2020 compared to the previous year. Heavy plate production declined by 23.9pc to 1.4mn mt during the same period. Of the heavy plate produced, 71.1pc was in Dillinger central and 28.9pc at its French site in Dunkerque.
Dillinger’s purchases of hot metal decreased by 18.3pc to 1.6mn mt in 2020 compared to the previous year. The total hot metal production by its subsidiary ROGESA Roheisengesellschaft Saar mbH fell by 17.4pc to 3.2mn mt in 2020 compared to 3.9mn mt in 2019.
Net sales dropped by 21.2pc to €1.6bn in 2020 compared to the previous year while EBITDA declined to a loss of €68.9mn from a profit of 8.5mn during the same period. Investments fell by 42.4pc to €41.7mn in 2020 compared to 2019. The Dillinger Group workforce shrunk by 15.1pc to 6,196 employees in 2020 in steel units and another 1,083 in joint offices.
Saarstahl’s crude steel production dropped by 17.6pc to 1.9mn mt in 2020 against the previous year’s production. Rolled steel production fell by 17.5pc to 1.7mn mt in 2020 compared to the year-ago figure. Shipments declined by 17.7pc to 1.8mn mt in 2020 against 2019.
Net sales declined by 23.7pc to €1.7bn in 2020 against the previous year and EBITDA tallied at a loss of €70.4mn against a loss of €18.5mn in the same timeframe.