KOPIE VON: Plant engineering benefits from big projects for sustainable steel
Plant engineering benefits from big projects for sustainable steel
Flexible modular structure for straightening machines
Despite the volatile market environment, the outlook for plantbuilders is optimistic, German mechanical engineering VDMA believes. The main reason for this is the transition of the steel industry, towards emission-free steel and the goal to become climate-neutral in Europe by 2050.
The metallurgical and rolling mill manufacturers organized in the VDMA Large Industrial Plant Manufacturers’ Group (AGAB) recorded incoming orders of EUR 2.75 billion in 2023, which is 10% more than in the previous year (2022: EUR 2.49 billion). This growth was primarily triggered by the increasing demand for plants for environmentally friendly steel production, which led to the award of several large and mega projects in Germany. Examples include the SALCOS project[1], which aims to completely convert Salzgitter AG’s integrated steelworks at its home location to green steel production by 2033, Arcelor Mittal’s decarbonization projects in Bremen and Eisenhüttenstadt and the replacement of a blast furnace with a hydrogen-powered direct reduction plant at Thyssenkrupp in Duisburg. Thanks to this special effect, domestic orders rose to a new record of € 1.17 billion (2022: € 172 million) - more than double the previous record of € 552 million set in 1991. As no decarbonization projects of a similar magnitude were commissioned outside Germany in 2023 and orders for fossil-fired metallurgical plants did not provide any impetus, foreign order intake fell to EUR 1.58 billion, 32% less than in the previous year (2022: EUR 2.32 billion)