The green transformation of the steel and metals industry as well as robust economic activity in India and the USA are behind the financial success of the German plant builder SMS group.

Speaking in Dusseldorf yesterday at the METEC exhibition, the company's CEO, Burkhard Dahmen, told journalists that sales rose considerably to 3.1 billion Euros from last year's 2.6 billion Euros.

The company lists decarbonization as a major growth driver and highlights work with H2 Green Steel in Sweden and with thyssenkrupp Steel in Germany as key projects in the so-called 'green transformation' of the industry.

"Last year was again marked by problem areas and crises around the world," Dahmen said. "Against this background, 2022 proved to be a good year, in which we achieved our interim goals despite various challenges and took the company forward significantly in terms of its organization."

"Last year was again marked by problem areas and crises around the world. Against this background, 2022 proved to be a good year, in which we achieved our interim goals despite various challenges and took the company forward significantly in terms of its organization."

Burkhard Dahmen, CEO of the SMS group

SMS group saw a further increase in its service business in terms of both order intake and turnover. Dahmen said that expanding the service share of total turnover remained the goal with the aim of it accounting for 50% by 2027. The company recently secured a service order from H2 Green Steel worth over 400 million Euros over 12 years.

With regard to earnings before taxes, SMS group achieved a result of 19 million Euros, only slightly above the adjusted previous year's level of 15 million Euros due to the Russian war of aggression against Ukraine and the associated withdrawal from business in Russia.

According to Torsten Heising, SMS group's CFO, "The high order intake is impressive, especially as it does not yet include the latest major orders. Based on the good order backlog, we intend to systematically increase our profitability in the coming years. We are already planning a significant improvement in results for the current year," he said.

"The high order intake is impressive, especially as it does not yet include the latest major orders. Based on the good order backlog, we intend to systematically increase our profitability in the coming years."

Torsten Heising, CFO, SMS group

The company's net liquidity was 501 million Euros, a downturn on the previous year due to extensive investments, including the service company KAEFER and the new SMS Campus in Mönchengladbach as well as new service workshops in the USA.

The company claims it has a key role to play in worldwide efforts to decarbonize the steel and metals industry, claiming the mission is to turn metals green.

"The latest mega projects are testament to our leading market position and, going forward, enable us to strike a careful balance in the order structure between equipment and service contracts," Dahmen said, adding that the green transformation is closely linked to services and digital solutions for more sustainable plants. He said the company strategy in recent years has 'set the right course for successful business growth.

"The latest mega projects are testament to our leading market position and, going forward, enable us to strike a careful balance in the order structure between equipment and service contracts."

Burkhard Dahmen, CEO, SMS group

In the past year, SMS group has invested 129 million Euros in innovation, the aim being to speed up product development in the fields of decarbonization and environmental technologies. The company has created an Innovation Hub. In addition it has set up two joint ventures, Primobius (battery recycling) and BOXBAY (port logistics). Both businesses have won orders from industry customers, the former receiving an order from Mercedes-Benz to build a recycling plant for lithium-ion batteries in Kuppenheim, and the latter a contract for a vertical, fully automated high-bay storage system in Busan, South Korea.

The company's plan to achieve sustainable, profitable growth has been achieved, SMS group claims, citing the 'good order situation'.

A significant improvement in its operating result for the current fiscal years is expected, as too its EBTA margin, which will reach 7% by 2026, it is claimed.

The company is about to open its new Campus in Mönchengladbach in time to celebrate the 150th anniversary of the SMS group. The plan is to move in by the end of the year to an impressive-looking building that will be the workplace for over 2,000 employees.