Swiss Steel Group plans to sell its Hagen and Krefeld plants in Germany, or close them if no buyer is found, and to concentrate steelmaking at Witten. Weak car and machinery demand, high energy costs and imports have left its German unit unprofitable.
At a glance
- Steelmaking at Siegen will be paused, affecting about 220 workers, though its rolling mill stays open.
- More than 70% of the Hagen plant's customers are carmakers, and its sales have more than halved since 2018.
- The restructuring of Deutsche Edelstahlwerke (DEW) will run over about two years.
Background
Specialty steels are high-grade alloys, such as tool and stainless steel, used in cars, machinery, aircraft and defence equipment. Deutsche Edelstahlwerke (DEW) is the German arm of Switzerland-based Swiss Steel Group and runs four sites in North Rhine-Westphalia. Europe's steelmakers have faced high energy costs and weak demand from carmakers for several years.
What happened
Swiss Steel Group announced a restructuring of its German subsidiary DEW, SteelOrbis and dpa-AFX reported. It plans to sell its Hagen wire rolling mill, with about 300 employees, and its Krefeld steel processing plant, with about 450. If no buyer is found, both sites are to be closed.
Steelmaking at Siegen will be paused, affecting about 220 people, but could restart if the market improves. The Siegen rolling mill, with about 700 workers, stays. Witten, with more than 1,000 employees, will become DEW's main specialty steel centre.
Why the company is cutting back
Demand has shrunk. Swiss Steel said the European long steel market has contracted sharply since 2021, while carmakers and machinery makers remain weak. High energy costs and rising import pressure add to the strain. DEW has not returned to operating profit despite cost cuts and job reductions since 2022.
Hagen shows the problem most clearly. Its sales volumes more than halved between 2018 and 2025, and output lost after the July 2021 floods never came back. Krefeld faces high energy and production costs, low use of its capacity and large reinvestment needs.
What comes next
The plan is to run Witten's electric arc furnace and casting plant near full capacity, which should lower costs per tonne. Witten will also target higher-margin markets such as civil aviation and defence, reducing DEW's reliance on cars.
Chief executive Frank Koch said the changes are needed to fit DEW to a structurally smaller European steel market. Management will negotiate a social plan with works councils, and the company said it aims to avoid compulsory redundancies.
Our read
Outlook: neutral. The cuts reflect weak European demand rather than a supply shock. They do not move global steel or iron ore prices.
What to watch
- Whether buyers emerge for the Hagen and Krefeld plants in the coming months.
- The outcome of talks with works councils on the social plan.
For information only, not investment advice.
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Detailed analysis
Timeline
- 2026-10-13: dpa-AFX reports DEW's plan to sell its Hagen and Krefeld plants.
Demand Drivers
Weak demand from carmakers and machinery makers has shrunk Europe's specialty long steel market since 2021.
Trade Tariffs
Rising import pressure is adding to the strain on European specialty steel producers.
Inflation
High energy costs in Germany make older plants such as Krefeld uneconomic to run.
What could lift prices
- Concentrating output at Witten could lower costs per tonne.
- Aviation and defence offer higher-margin demand for specialty steel.
What could weigh on prices
- German car industry demand remains weak.
- Plant closures point to a lasting fall in European steelmaking capacity.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Germany | Medium | Hundreds of steel jobs in North Rhine-Westphalia are at risk if no buyers are found. |
| Switzerland | Low | Swiss Steel Group is shrinking its biggest foreign production network. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Steel Manufacturing | Negative | European specialty steel capacity is being cut as demand falls. |
| Automotive | Neutral | Weak car demand is the main cause, and carmakers have other suppliers. |
Who gains, who loses
- Witten plant: It gains production volumes and new investment to run near full capacity.
- Workers at Hagen and Krefeld: About 750 jobs depend on finding buyers for the two plants.
Other ways this could play out
- If buyers are found, Hagen and Krefeld could keep operating under new owners.
- If the market recovers, steelmaking at Siegen could restart.
Price risks
- Lower European output could raise specialty steel import demand.
- A deeper car industry slump could force further cuts.
Historical comparison
- July 2021 floods: Hagen lost output after the 2021 floods and never recovered it.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
Germany
Switzerland