Ferrexpo plc and Salzgitter Flachstahl GmbH announced the consolidation of their long-standing cooperation. The companies have signed a Memorandum of Understanding ("MoU") for the supply of high-quality direct reduction iron ore (DR) pellets for low-carbon steel production. Highlights: Memorandum of Understanding for the use of high-quality iron ore pelletsinSALCOS®, Salzgitter's operational decarbonisation programme; Joint development of raw material feed strategies and green supply chains.

Ferrexpo's DR pellets will be used as part of the SALCOS® programme, in which Salzgitter is incrementally converting its steel production to hydrogen-based processes and technologies. Steel production using SALCOS® requires iron ore pellets of very high quality and this MoU demonstrates Salzgitter's confidence in the high quality and availability of Ferrexpo's products. The SALCOS® programme will be completed from a technical perspective by 2033.

As part of the MOU, Ferrexpo and Salzgitter Flachstahl GmbH will also seek to identify the most suitable raw material feed strategies for hydrogen-based steel production in direct reduction plants as well as optimising their green logistics chains, freight and inventory management.