Digitalization also encompasses the infrastructure of steel production itself. SMS Group, for example, is building its own "private 5G Campus network" for research and development at the Hilchenbach site. Together with partner companies Mugler and Ericsson, a private 5G infrastructure was created that enables testing of the currently highest available mobile communications standard.
According to SMS, the environment offers a unique opportunity to test use cases internally and present them to potential customers in a clear manner. Tests are being conducted on applications in the areas of mobility and automated vehicles (AGV), Industrial Internet of Things (IIoT), and lone worker applications. "With its 5G connectivity, SMS Group bridges the gap between physics, sensor technology, OT, and IT," says Jens Petri, Head of Technologies and Partnerships at SMS digital. The 5G Campus Network represents an important step in evaluating advanced digitalization technologies and their applications in the steel industry.
Sustainability Through Digitalization and Electrification: The Path to Green Steel
Digitalization is not an end in itself but an indispensable instrument on the path to decarbonization of the steel industry. Digital technologies make it possible to optimize production processes so that energy is used more efficiently and CO₂ emissions are systematically reduced.
A concrete example: Through AI-supported process optimization, blast furnaces can be operated significantly more efficiently. Tim Eschert, CEO of Fero Labs, puts it drastically: "Every day that blast furnaces run without AI-based process optimization is unnecessarily expensive and dirty." The potentials are considerable: Through optimized temperature control, better scrap utilization, and more precise alloy addition, energy consumption and emissions can be significantly reduced.
However, recycling offers the greatest decarbonization leverage - melting scrap via electric arc furnaces, which requires up to ten times less energy than the classic blast furnace route. The environmental bonus of recycled green steel resulting from rising CO₂ prices will boost demand in the future: Compared to production from iron ore via the blast furnace route, recycling saves an average of 1.67 tons of CO₂ per ton of steel - equivalent to the amount of CO₂ that a car emits over a distance of 9,000 kilometers.
The pricing of the CO₂ component is also being driven forward by regulatory requirements such as the EU CBAM system (Carbon Border Adjustment Mechanism). From 2026, companies must transparently demonstrate the carbon footprint of their products - a requirement that can hardly be met without digitalized processes and data integration.
The Challenges of Digital Transformation
Despite all successes, digital transformation continues to pose significant challenges for the steel industry. The integration of various IT systems, the construction of "data lakes," and the development of AI-based solutions require substantial investments and qualified personnel. Especially small and medium-sized enterprises often face major hurdles: They lack the appropriate data foundation, qualified specialists, or sufficient experience and trust in the new methods.
Cybersecurity is also a central challenge: The more networked production becomes, the larger the attack surfaces and entry points for cyberattacks. Companies must therefore invest significantly in IT security and continuously train their employees.
Outlook: The Steel Industry of Tomorrow
Digitalization of the steel industry has made rapid progress in recent years but simultaneously faces further major development steps. The vision of a fully networked, AI-supported steelworks is moving closer, but a completely autonomous plant will not exist in the foreseeable future. Andreas Dalchow from ArcelorMittal puts it realistically: "No, not completely autonomous. But it is quite astonishing how few people are needed for the actual operation of a plant."
The future lies in the intelligent combination of human expertise and digital technology. AI will not replace humans but will expand their scope of action and put decisions on a better data basis. Modern analytics makes visible what was previously hidden and enables optimizations that were not possible before.
For European steel manufacturers, digitalization is more than a nice-to-have - it has become a matter of survival. In a global competitive environment where cost efficiency and sustainability are equally demanded, digital technologies offer the key to competitiveness. Companies that invest in digitalization now secure advantages for the coming decades. Those who hesitate risk losing connection to the global elite.
The European steel industry has set the right course: With innovative research projects like DiGreeS, bold pioneers in AI application, and established digital trading platforms, the foundation for successful digital transformation has been laid. Now it is important to consistently continue this path and fully exploit the potentials of digitalization. Many roads lead to Rome. However, all of them are signposted with "AI."