Klöckner & Co and the Salzgitter Group partnering for the transformation to a green steel industry
23.05.2023 | Press release of Salzgitter AG
- The long-standing partners aim to significantly raise the volume of green steel available on the markets
- As from the end of 2025, the Salzgitter Group will be delivering CO2-reduced steel to Klöckner & Co
Klöckner & Co and the Salzgitter Group have entered into a partnership geared to stepping up their collaboration in the transformation process to a green steel industry. Going forward, the volume of green steel available on the markets will be significantly increased: From year-end 2025, the Salzgitter Group will be delivering CO2-reduced steel produced via the new hydrogen-based “SALCOS®” production route to Becker Stahl-Service GmbH, a subsidiary of Klöckner & Co. The CO2-reduced steel from Salzgitter will be available under the “Nexigen®” umbrella brand under which Klöckner & Co is offering its CO2-reduced steel and metal solutions.
Guido Kerkhoff, CEO of Klöckner & Co SE: “Our partnership with the Salzgitter Group will enable us to considerably ramp up the availability of green steel for our customers, thereby significantly reinforcing the “Nexigen®” brand offerings. Under the “Nexigen®” umbrella brand, we are transparently combining our CO2-reduced solutions in materials, processing and logistics. This enables us to assist our customers in consistently developing reliable and sustainable value chains. In these endeavors, we are forging ahead with the implementation of our ‘Klöckner & Co 2025: Leveraging Strengths’ corporate strategy and consolidating our role as a pioneer of a sustainable steel industry.”
As Gunnar Groebler, Chief Executive Officer of Salzgitter AG, stated: “A key success factor for SALCOS® is close collaboration with customers and partners in line with our ‘Partnering for Transformation’ strategic mission. We are therefore delighted to extend our cooperation with Klöckner & Co now to include green steel products. The keen interest from industry, such as from the automotive and household appliance sectors, and trading in our CO2-reduced products indicate that the market for green steel products is increasingly gaining traction.”
Salzgitter Group to produce CO2-reduced steel via a new hydrogen-based route
Salzgitter Flachstahl GmbH will produce the CO2-reduced steel for Klöckner & Co via the new hydrogen-based "SALCOS® - Salzgitter Low CO2 Steelmaking" production route. The objective of SALCOS® is to achieve virtually carbon-neutral steel production, implemented in three stages. The first stage will go into operation as early as the end of 2025. The gradual replacement of the blast furnaces currently in use by direct reduction plants and electric arc furnaces will already put the Salzgitter Group in a technical position to save around 95 percent of the emissions from steel production by the end of 2033.
Klöckner & Co combines CO2-reduced products under the Nexigen® brand
To offer its customers enhanced transparency in the market for CO2-reduced carbon steel and metal solutions, Klöckner & Co has developed its own “Nexigen®” categorization. The brand stands for transparent, CO2-reduced solutions in materials, processing and logistics. This brand portfolio provides Klöckner & Co customers with a reliable source of green steel and metal products as well as full transparency in terms of their carbon footprint, from sourcing raw materials all the way through to production. In conjunction with an extensive range of logistics and secularity solutions, flanked by Sustainable Advisory Services, Klöckner & Co supports its customers in building up sustainable supply chains. The independently certified Nexigen® PCF algorithm calculates the product carbon footprint (PCF) for virtually all of the around 200,000 Klöckner products.
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