The SHS – Stahl-Holding-Saar Group (SHS Group), together with its subsidiaries Dillinger and Saarstahl, has successfully completed a comprehensive €1.7 billion financing package for its landmark Power4Steel transformation project — one of Europe’s most significant industrial decarbonisation initiatives. This financing ensures full funding for the entire duration of the investment programme and marks a major milestone on the Group’s path toward low-carbon steel production.
The financing structure, secured through a consortium of leading national and international banks, combines both corporate and project-based investment components. The investment element is supported by the export credit agencies OeKB (Austria) and SACE (Italy). Substantial equity contributions from the company and direct financial support from the German Federal Government and the Saarland Regional Government further strengthen the package. The public funding forms part of the €2.6 billion programme dedicated to transforming the Saarland steel industry.
“This is another decisive step toward a low-carbon future,” said Stefan Rauber, CEO of SHS – Stahl-Holding-Saar and Chairman of the Management Boards of Saarstahl and Dillinger. “With financing now fully secured, alongside government commitments, hydrogen supply agreements and plant construction orders, we are advancing Power4Steel with full confidence. This project demonstrates that climate protection, innovation and industrial competitiveness can move forward together — and that Germany remains a strong hub for sustainable steelmaking.”
The financing was supported by several key partners: ING served as Documentation Agent, UniCredit as ECA Coordinator and Agent, and Deutsche Bank as Co-ECA Coordinator, Intercreditor, Security and Facility Agent. Lazard acted as financial advisor to SHS, Hogan Lovells provided legal counsel, and Freshfields advised the banking consortium. Rothschild & Co also supported SHS in an earlier phase of the project.
“We are grateful to our financing partners for their trust and commitment to supporting industrial decarbonisation,” added Markus Lauer, CEO of SHS – Stahl-Holding-Saar and Chief Financial and Procurement Officer of Dillinger and Saarstahl. “The success of this transaction underscores the close alignment between industry, finance, and government — and the shared responsibility to drive forward the transformation toward climate-neutral steel production. It also sends a clear signal about the long-term strength and resilience of the Saarland steel industry.”
Christian Lattwein, Head of Finance at SHS, emphasized: “This financing demonstrates what can be achieved when all stakeholders — from industry to banks and public partners — work toward a common goal. Together, we are making the decarbonisation of European steel production a reality.”
As part of the Power4Steel project, SHS is constructing a direct reduction plant and two electric arc furnaces at its Dillingen and Völklingen sites, which will gradually replace the existing blast furnaces and converters. The transition to hydrogen-based steelmaking will reduce CO₂ emissions by approximately 55% by 2030, with full climate neutrality targeted by 2045.
In the long term, SHS Group aims to become Europe’s leading producer of green steel, demonstrating that large-scale industrial transformation can go hand in hand with innovation, regional development, and sustainability.
