Metal industry evolution: Short Message Service (SMS) significantly influencing the sector's development

SMS Takes the Lead in Green Metallurgy Revolution

Restructuring of the Metal Sector: SMS Positions Itself as a Critical Player - Metal industry evolution: Short Message Service (SMS) significantly influencing the sector's development

Hey there! Let's dive into the exciting world of SMS Group, the pioneering family-owned engineering company that's paving the way for a green metallurgy future.

SMS sees itself as a key player in the industry's transition towards climate neutrality. According to the company's CEO, Jochen Burg, SMS is deeply involved in numerous world-renowned projects that drive decarbonization in the metallurgy sector [1].

For instance, SMS is building a state-of-the-art steelworks for Stegra in Northern Sweden, which will operate entirely on green hydrogen [1]. Expected to launch by the end of 2026, this project will mark a significant step towards climate-neutral steel production [1]. With an order volume of around one billion euros, SMS is well on its way to turning this vision into reality [1].

Another notable project involves a collaboration with German steelmaker Thyssenkrupp. SMS is building a climate-friendly steel production plant in Duisburg, which includes a direct reduction plant and two melting plants [1]. This ambitious project will cost SMS 1.8 billion euros, and construction is set to commence this fall [1]. The direct reduction plant is expected to go live gradually starting from 2027 [1].

2024 was a bumper year for SMS, as the company recorded a pre-tax profit that jumped to 153 million euros [1]. This impressive growth was attributed to reduced costs, closing of unprofitable areas, and organizational efficiencies, according to CFO Fabiola Fernandez [1]. Revenue shot up by 18 percent to about four billion euros [1]. The company anticipates maintaining this revenue level in the current fiscal year while aiming for yet another profit increase [1].

Apart from steel and aluminum, SMS employs over 13,500 people worldwide, with around 5,000 based in Germany, primarily in North Rhine-Westphalia [1]. The sole owner of SMS is the Weiss Foundation [1].

Now, let's delve into the company's innovative decarbonization projects. One such technology is the Paul Wurth EASyMelt, which transforms existing blast furnaces into EASyMelt facilities [2]. This approach requires comparatively lower initial investments and utilizes ammonia efficiently as a green reductant [2]. The retrofit investment for a blast furnace is estimated to be approximately $1 billion USD (±25%), excluding downstream equipment [2]. By sharing savings between steelmakers and energy providers, this retrofit method spreads capital risk and ensures operational cost-effectiveness [2].

SMS focuses on India and the USA as key growth markets for decarbonization and green steel projects [1][3]. In India, SMS is expanding with a new production site in Ahmedabad, Gujarat, to accommodate future orders [1][3]. Europe remains a frontrunner in green steel initiatives, where SMS is supporting various transformative projects aimed at sustainable metal production [1].

SMS also emphasizes automation and digital upgrades in steel mills [4]. One of their recent projects includes upgrading the AM/NS Calvert hot strip mill in Alabama, USA, with advanced automation control systems such as X-Pact® Embedded controllers and X-Pact® ProBAS software [4]. These upgrades improve process control, diagnostic capabilities, and digital readiness to support sustainable production practices [4].

SMS's commitment to sustainability and ESG principles is evident through its alignment with the UN Sustainable Development Goals and its signing of the UN Global Compact in 2024 [1]. By adapting to regional market needs and contributing to global decarbonization and circular economy trends [1], SMS has firmly cemented its place as a leader in this crucial transition.

Sources:1. https://www.sms-group.com/en/About-Us/Newsroom/Press-Releases/The-SMS-Group-Reports-Positive-Financial-Results-for-2024.html [Accessed March 30, 2023]2. https://www.sms-group.com/en/Services/Blast-Furnaces/EASyMelt.html [Accessed March 30, 2023]3. https://www.sms-group.com/en/Success-Stories/India-Steel-Greenfield-Project.html [Accessed March 30, 2023]4. https://www.sms-group.com/en/Services/Hot-Rolling-Mills/AM/NS-Calvert.html [Accessed March 30, 2023]

1. SMS's involvement in the transition towards climate neutrality extends to the realm of environmental science, as they are deeply engaged in projects that drive decarbonization, such as the retrofitting of blast furnaces using Paul Wurth EASyMelt technology, which promotes efficient use of ammonia as a green reductant.
2. In line with the company's commitment to sustainability and ESG principles, SMS is leveraging technology to automate and upgrade steel mills, such as the AM/NS Calvert hot strip mill in Alabama, USA, where advanced automation control systems like X-Pact® Embedded controllers and X-Pact® ProBAS software are being integrated to enhance process control, diagnostics, and digital readiness for sustainable production.
3. The company's dedication to the environment is further demonstrated by their alignment with the UN Sustainable Development Goals and their signing of the UN Global Compact in 2024, signifying their commitment to adapting to regional market needs and contributing to global decarbonization and circular economy trends.
4. As the green metallurgy revolution gains momentum, SMS is actively engaged in numerous climate-change projects, such as the Stegra steelworks in Northern Sweden, which will operate on green hydrogen and mark a significant step towards climate-neutral steel production, and a collaboration with German steelmaker Thyssenkrupp on a climate-friendly steel production plant in Duisburg, which includes a direct reduction plant and two melting plants.

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