The automotive supplier Gestamp Automocion SA and Salzgitter Flachstahl GmbH have now signed a Memorandum of Understanding (MOU).

In the future, Gestamp will use low-CO2 steel produced using the SALCOS process and will examine the establishment of closed-loop systems, such as combining steel deliveries to Gestamp's European plants (e.g. in Germany) with the return of scrap from these sites.

With the transformation program SALCOS - Salzgitter Low CO 2 Steelmaking, the Salzgitter Group is gradually converting its steel production to hydrogen-based processes from 2026. The goal is almost completely CO 2 -free production from 2033. The classic blast furnace route will be replaced by hydrogen-based production processes using direct reduction and electric arc furnaces.

Salzgitter Flachstahl can already supply its customers with CO2 - reduced steel via the so-called Peine route. The slabs are produced at the Peine site using the electric arc furnace from high-quality steel scrap. As part of the agreement, both companies will examine the establishment of closed-loop systems that supply Salzgitter with scrap from the Gestamp plants for the production of low-CO2 steel .

Gestamp has been a long-standing partner of Salzgitter Flachstahl and is mainly supplied with hot- and cold-rolled flat steel products. The main customers are Gestamp locations in Germany, but also in the USA and Argentina.

Javier Imaz CPO (Chief Purchasing Officer) at Gestamp: 'The partnership between Gestamp and Salzgitter in the supply of low-emission steel and the possibility of setting up circular routes for the return of scrap for the production of SALCOS is a step forward on the path to decarbonising the industry, towards a net-zero car.'

Dr. Ralf Koch, Head of Sales Automotive Industry at Salzgitter Flachstahl GmbH: 'With our SALCOS products, we offer Gestamp the opportunity to offer its customers CO2-reduced steel from 2026 and thus be one of the pioneers on the way to climate-neutral products.'

About Salzgitter AG

Salzgitter AG is one of Germany's leading steel and technology groups.

As a pioneer in the circular economy, we focus on the sustainable innovation and transformation of our products and processes in the steel production, steel processing, trading and technology business areas.

With our strategy 'Salzgitter AG 2030' and the principle 'Pioneering for Circular Solutions' we are setting new standards in the industry. Our demands are realized through strong initiatives and programs such as SALCOS - Salzgitter Low CO 2 Steelmaking. With partnerships and networks we are actively driving forward the further development towards a circular economy.

With around 25,000 employees worldwide in 160 national and international subsidiaries and associated companies, we live up to our global aspirations for growth, profitability and our pioneering position. In the 2023 financial year, we generated external sales of around EUR11 billion with a crude steel capacity of 7 million tonnes.

About Gestamp

Gestamp is an international company specialising in the design, development and manufacture of high-tech metal components for numerous car manufacturers. The company develops products with innovative designs to produce lighter and safer vehicles with lower energy consumption and a lower environmental impact. The company's products cover the areas of bodywork, chassis and mechanical components such as drive technology and door hinges.

The company is present in 24 countries with more than 115 production plants (5 of which are under construction), 13 research and development centers and more than 44,000 employees worldwide. Its turnover in 2023 was around 12.3 billion euros. Gestamp is listed on the Spanish stock exchange under the symbol GEST.

Contact:

Thorsten Mollmann

Head of Corporate Communications and Brand

Tel: +49 5341 21-2300

Email: moellmann.t@salzgitter-ag.de

Olaf Reinecke

Tel: +49 5341 21-5350

Email: reinecke.o@salzgitter-ag.de

(C) 2024 Electronic News Publishing, source ENP Newswire