thyssenkruppp Steel awards €1.8b DRI contract to SMS

The plant will utilize Midrex technology, with a capacity of 2.5Mt of directly reduced iron. Startup is planned for the end of 2026.

thyssenkrupp Steel is already planning to avoid as much as 6Mt of CO₂ by 2030, representing well in excess of 30% of its emissions. The transformation to carbon-neutral production should be completed by 2045 at the latest, the company has said.

The order that has now been placed is also historic for SMS: It is the largest single order in the company's history spanning more than 150 years.

Burkhard Dahmen, CEO of SMS group commented: ‟This project means a great deal to us. thyssenkrupp and SMS have been working together closely for many decades now. We are looking forward to taking responsibility for this forward-looking project as well. We are also delighted that our technology, know-how and expertise in project management will support the green transformation at Germany's biggest steel producer. We all know: this is an important milestone on the road to a green metals industry.”

Bernhard Osburg, CEO of thyssenkrupp Steel commented: ‟With this contract award, we are now embarking on the implementation and industrialization of our transformation. It is a historic day for thyssenkrupp Steel and good news for industrial climate change mitigation – since, just by itself, our first direct reduction plant will enable us to avoid emitting 3.5Mt of CO₂. We are very pleased that we have SMS as our partner for the technological leap into hydrogen-based steel production. Together, we intend to demonstrate that an innovative and sustainable transformation of the steel industry is possible in Germany and Europe. We are thus creating the basis for tomorrow's green steel markets.”