The EU Steel industry could witness some changes that could strengthen its place in the global steel market. German steelmaker and longs producer Südwest Beteiligungen (SWB) recently announced plans to merge its production and rolling assets with those of the Van Merksteijn Group, headquartered in the Netherlands. It is a move that could have a significantly impact on the EU steel industry, which continues to face numerous challenges.
On January 7, the German company announced that the Seizinger and Weitzmann families, shareholders in SWB, had signed a merger agreement with the Van Merksteijn family on December 18. The transaction is now awaiting approval from relevant competition authorities, and the companies hope to see the merger completed in Q1/Q2.
“When the competent competition authorities have given their go-ahead, a joint holding company will be established in spring 2025,” SBW noted in its January 7 statement.
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Company Leaders Have High Hopes for the New Firm
Following the merger, the company will trade under the name Reinforcing Steel Europe and have its headquarters in Almelo, Netherlands, according to sources in the EU steel industry.
“The planned merger will enable us to consolidate our position as a leading manufacturer and processor of reinforcing steel products in the EU. It will also provide us with a more geographically diverse presence and increase our proximity to customers throughout Europe,” Südwest added in its statement.
The company added that “The steel sector has faced numerous challenges in recent years, including the COVID crisis, changing environmental and legal requirements, limited raw material availability and extreme energy price fluctuations.”
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Reinforcing Steel Europe Could Positively Impact the EU Steel Industry
SWB currently has its headquarters in Eberbach, in southwest Germany’s Baden-Württemberg State, where the company also has its main Badische Stahlwerk. Other assets include Moselstahlwerk in Trier, located in neighboring Rheinland-Pfalz.
Badische Stahlwerk can produce up to 1.8 million metric tons of long products per year from two 90-ton electric arc furnaces. This includes 10-40mm diameter rebar in coils and wire rods. A five-strand caster also casts billet from the EAFs for rolling. Meanwhile, Moselstahlwerk can produce up to 250,000 metric tons per year of crude steel from its single electric arc furnace, which it also casts into billet for rolling into wire rod.
The Van Merksteijn Group has the Intersig plant in northern Belgium, which sources billets for rolling into rebar in coil. Intersig France and VMI Atlantic, located in central and southwestern France, respectively, also produce roll bar and downstream solutions.
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