Thyssenkrupp Steel’s Direct Reduction Plant (DRA) has been delayed, pushing its start date back by two years from original plans. This significant setback means that the production of green steel will be substantially postponed, according to an updated funding notice issued by the European Commission.
Confirming the delay to Politico, the company now projects that the production facility situated in Duisburg will not begin operations until 2029. Thyssenkrupp Steel attributed this prolonged completion time primarily to the complexities inherent in the project’s engineering phase. The European Commission cited general construction delays, which they linked to the highly innovative nature of the undertaking.
The company originally obtained a two-billion-euro grant in 2023 and began construction in February 2024, with the new plant originally scheduled to open in the following year. Due to this delay, Salzgitter AG will currently be positioned as the first company in Germany to manufacture green steel, referencing its facility planned for operation in Niedersachsen next year.
The general contractor for the project, SMS Group, commented to Politico that modifications to the scope, execution process, and timeline are not unusual for projects of this immense scale. Although Thyssenkrupp Steel stated in recent communications that possible acceleration and compensatory measures are still being pursued, they confirmed that the project will not become more costly because of this delay. The company did not provide a specific date for the plant’s commissioning.
