The transformation of the Saarland steel industry is rapidly gathering pace. In the presence of Federal Chancellor Friedrich Merz and Saarland Minister-President Anke Rehlinger, SHS – Stahl-Holding-Saar (SHS) today presented the latest progress on its Power4Steel project at its Dillingen site. At the same time, SHS unveiled a forward-looking technology scale-up in partnership with Y-SIC Holding GmbH (Y-SIC). Together, the two initiatives underscore the Saarland steel industry’s ambition to actively shape industrial change – not only by decarbonizing steel production, but also by opening up new technology fields.
 

Power4Steel: The future is taking shape

Through Power4Steel, the Saarland steel industry is investing €4.6 billion in the climate-neutral transformation of steel production at its Dillingen and Völklingen sites. The project is Europe’s largest industrial decarbonization initiative and is being supported by the Federal Government and the State of Saarland with €2.6 billion in funding.

Progress on this “giga-project” is now clearly visible on site. Construction is well underway across the two sites, with the first of approximately 120 new buildings already completed. Following extensive groundworks and foundation works, Power4Steel is now beginning to take shape above ground. A particular landmark is the new direct reduced iron (DRI) plant, which will rise to around 140 metres. As a centrepiece of the new steelmaking route, it will become a defining feature of the Dillingen skyline – a powerful symbol of the transformation’s scale and ambition.
 

Y-SIC: A new technology field of strategic importance

Through its stake in Y-SIC, the Saarland steel industry is extending its reach beyond conventional steelmaking. The deep-tech company has developed an entirely new process for the industrial production of high-purity silicon carbide (SiC) – a material with enormous potential to drive technological progress, particularly in the semiconductor industry.

The Saarland steel industry is participating in the Y-SIC scale-up as an industrial partner alongside the State of Saarland. The funding will support the construction of Y-SIC’s first commercial silicon carbide production facility, which will be located on Dillinger’s works premises. The plant will produce SiC powder continuously and on an industrial scale using a newly developed, more energy-efficient and environmentally friendly process. The aim is to make the production of silicon carbide competitive in Europe for the first time. This would help close a critical gap in the European value chain for this strategically important material and reduce dependence on non-European supply chains.

 

Quotes:
 

Friedrich Merz, Federal Chancellor of the Federal Republic of Germany:
“By switching steel production to more climate-friendly processes and moving into silicon carbide manufacturing, Stahl-Holding-Saar is driving forward the transformation of the German steel industry. In November, the Federal Government pledged its support for the sector, with the aim of strengthening its competitiveness. Important goals, such as the introduction of enhanced trade protection for the steel sector, have since been achieved. The Federal Government is committed to the transformation of the steel industry in Germany.”

 

Anke Rehlinger, Minister-President of Saarland:
“Saarland wants to remain a state with a strong industrial base. The technological reinvention of the steel industry in Saarland protects both the climate and jobs at the same time. This is one of Europe’s largest industrial projects – and it must receive the appropriate support from the Federal Government and the EU at every stage of its implementation. As a first mover, the Saarland steel industry needs certainty and confidence to invest. With Power4Steel and Y-SIC, SHS - Stahl-Holding-Saar is breaking new ground and helping to shape the future – in Saarland and across Europe. In doing so, we are also helping to make Europe more independent and resilient.”

 

Jürgen Barke, Minister for Economic Affairs, Innovation, Digital Affairs and Energy of Saarland:
“Y-SIC represents exactly what we want to achieve through structural transformation in Saarland: securing industrial strength while simultaneously creating new sources of industrial value. In Saarland, future technologies should not only be researched, but also manufactured – creating value and jobs locally. Steps like these require courage and capital, particularly in the early stages. That is why, as a state, we are working with our partners to create the conditions needed to take this step.”

 

Stefan Rauber, Chairman of the Management Board of SHS – Stahl-Holding-Saar and Chairman of the Board of Saarstahl and Dillinger:
“The future needs pioneers – that has been true of our companies for more than 400 years, and it is truer today than ever. With Power4Steel, we are laying the foundations for a new era of steel production in Saarland. At the same time, we are opening up new fields of business. With Y-SIC, we are continuing along this path: The silicon carbide start-up combines strong innovative capabilities with the potential to create new industrial value. Power4Steel and Y-SIC bring together industrial strength, technological progress and sustainability, helping to shape the future of our group and secure Saarland’s position as an industrial location.”

 

Dr Peter Maagh, Managing Director of SHS – Stahl-Holding-Saar and Board Member for Technology and Production at Saarstahl and Dillinger:
“Power4Steel is nothing short of open-heart surgery: While our existing plants continue to operate, we are simultaneously building the steel production of the future right alongside them. Our goal is to become Europe’s most modern steel producer. At the same time, Y-SIC is taking us beyond our core business. We are bringing our industrial experience and process engineering expertise to help turn an innovative technology into an industrial-scale reality.”

 

Jonathan Weber, Managing Director of SHS – Stahl-Holding-Saar and Board Member for Finance and Transformation at Saarstahl and Dillinger:
“We are transforming our entire business model with Power4Steel. Alongside the historic €4.6 billion investment in a new liquid-phase facility, we are overhauling our raw material and energy mix, numerous processes and IT systems, and a substantial part of our cost base, while supplying our customers with lower-carbon steel. Power4Steel is therefore the central pillar of the SHS Group’s long-term competitiveness.”

 

Alexander Zeyss, CEO of Y-SIC Holding GmbH:
“Silicon carbide is a key material for numerous future technologies. Our goal is to establish competitive production of this strategically important material in Europe for the first time. We have strong partners in the Saarland steel industry and the State of Saarland. Together, we are combining technological know-how, industrial experience and a long-term perspective to turn innovation into industrial reality.”