Description
SWOT ANALYSIS OF SALZGITTER

Salzgitter

Parent Company

Salzgitter AG

Category

Iron & steel

Sector

Industrial products

Tagline/ Slogan

-

USP

Business activities are concentrated on steel and technology

STP

Flat carbon steel, sections, plates, tailored blanks, roof and wall Segment elements, sheet piles

Industries including automobile, energy, shipbuilding, construction, Target Group petroleum

Positioning

Preserving independence through profitability and growth

SWOT Analysis

1. One of Europe’s leading steel and technology groups –with consistently performing sales 2. A high crude steel production capacity of approximately 9 million+ tons 3. Has a workforce of around over 25,000 employees 4. High exports as result of the changed parity of the euro against the US dollar, growth in external sales Strength 5. Strong financial position and reputed market value

1. Price transparency in the global market for iron ore has continued to deteriorate, it affects cost of production to great extent 2. High dependence on Europe but there is less demand for steel in Weakness automotive industry in Europe due to financial crisis

1. The upcoming fall may bring a recovery in steel demand and the implementation of urgently needed price increases 2. The international demand for German industrial goods will remain Opportunity strong, hence opportunity to produce & sell more

3. Expansion plans in emerging economies

1. Risk arising from raw materials price volatility, particularly iron ore and coking coal whose deliveries are largely base on quarterly contracts 2. Contracts based on monthly pricing for coking coal will affect one third of the volume purchase by Salzgitter 3. The comparatively robust situation of Germany is also coming increasingly under pressure of contagion, against this backdrop many Threats steel traders will replenish inventories

Competition

1. Elopak AS Competitors 2. JFE Holdings Inc



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