Not really ordinary smelting plant in Europe using an exotic MIDREX process (the chemical way of direct reduction within the pig iron production) was built in 1968 in southern part of Hambug. Also known as "Hamburger Stahlwerke" until 1995 when ArcelorMittal bought the whole site.

The MIDREX process is quite common in countries of North Africa (Libya, Egypt) and Eastern Europe (Russia).

The steel mill is based on electical arc furnace (130t), continuous caster and a wire mill.