Steelmaker Salzgitter’s energy costs to rise steeply -CEO says

Steelworkers stand at a furnace at the plant of German steel company Salzgitter AG in Salzgitter, Germany March 2, 2020. REUTERS/Fabian Bimmer/File Photo

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FRANKFURT, Sept 21 (Reuters) – Salzgitter (SZGG.DE), Germany’s second-largest steelmaker, expects energy costs to rise significantly in 2022 in the wake of Europe’s energy crisis, its chief executive said, adding that some of that could be passed on to customers.

“Costs are likely to be up by a mid triple-digit million euro amount compared to last year,” Gunnar Groebler told Handelsblatt.

“And we are basically seeing that customers understand that part of the cost increases in the energy sector must also be reflected somewhere in the product prices,” he added.

Groebler told Reuters last month that Salzgitter was in talks with regulators in a bid to secure exemption from potential gas rationing, saying its production was vital for Germany’s broader energy security plans and local city heating. read more

“We are still achieving positive results in our businesses, although certainly not at the same level as in the first half of the year,” Groebler said.

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Reporting by Christoph Steitz. Editing by Jane Merriman

Our Standards: The Thomson Reuters Trust Principles.


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