#Sweden #Stegra #Boden #thyssenkrupp #non-prime steel

thyssenkrupp Materials Services and Stegra Join Forces for Steel Supply

In a significant move for the European steel industry, thyssenkrupp Materials Processing Europe has entered into a multi-year agreement with Stegra for the supply of non-prime steel. The deal, which aims to bolster the supply chain for various industries across Europe, will see the first deliveries commencing in 2027, with total tonnage projected to be substantial, reaching into the high six-digit range.

Strategic Importance of the Agreement

This agreement highlights thyssenkrupp Materials Services' robust logistics infrastructure and processing capabilities, allowing them to efficiently handle extensive quantities of steel. CEO of the Processing business unit, Heather Wijdekop, emphasized the company's readiness to provide support in various sectors, including automotive, construction, and original equipment manufacturers (OEMs). Additionally, the collaboration aims to assist Stegra in ramping up operations at their newly established large-scale production facility in Boden, Sweden, contributing to the decarbonization efforts within the steel industry.

As a part of Stegra’s commitment to sustainable production, the Boden facility will utilize green hydrogen sourced from renewable electricity. This innovative production method will allow for not just the creation of high-quality steel but also the generation of non-prime steel materials. Even though these materials do not meet the highest quality standards for certain applications, they remain strong and durable, making them suitable for various uses—thus creating a significant portion of the market for non-prime steel across Europe.

Long-term Partnership Outlook

Stephan Flapper, Head of Commercial at Stegra, expressed optimism about entering this partnership with thyssenkrupp Materials Services, labeling it as the foundation for a long-term relationship that will further drive the demand for steel products produced through sustainable practices. The agreement signals a shift in how steel can be produced and marketed, particularly as both companies focus on leveraging environmentally friendly production methods.

Implications for Environmental Standards

Although Stegra’s production methods do utilize renewable energy, it’s crucial to note that the non-prime steel acquired by thyssenkrupp won’t carry CO2 reduction claims in its marketing. Stegra plans to sell the environmental attributes stemming from their production methods as Environmental Attribute Certificates (EACs) to other customers interested in sustainable steel solutions, particularly those in the prime steel market. This approach not only ensures clarity and transparency concerning emissions but also cultivates a responsible marketplace for environmental claims in the steel industry.

The initiative to secure agreements for non-prime steel exemplifies the emerging market for environmental attribute certificates in steel production. With this framework, concerns regarding double-counting emissions performance can be addressed, as the buyer is committed not to making any misleading green claims. These developments are vital for fostering a competitive and transparent landscape in the steel sector.

Conclusion

As thyssenkrupp Materials Services partners with Stegra, it marks a pivotal moment in the pursuit of sustainable industrial practices within the European steel market. The collaboration promises benefits for customers across various sectors, while simultaneously addressing environmental challenges. This move not only positions both companies at the forefront of innovation and sustainability but also sets a new standard for responsibilities in steel production. The steel industry, in turn, may look forward to the increases in eco-friendly practices driven by these ongoing partnerships, which hold the potential for greater industry-wide transformations.

For further inquiries or information, please contact Karin Hallstan, Head of Communications at Stegra, via email at [email protected]