Quality meets sustainability

08.03.2024 | Salzgitter AG

  • Cooperation agreement forged between Steelaris Pte Ltd, Salzgitter Mannesmann International GmbH and Ilsenburger Grobblech GmbH
  • CO2-reduced steel supplied by the Salzgitter Group for customer in Asia

Steel trading company and project management provider Steelaris Pte Ltd. based in Singapore, Salzgitter Mannesmann International GmbH and Ilsenburger Grobblech GmbH have signed a Memorandum of Understanding (MOU) on March 8, 2024.
Steelaris supplies customers in Singapore and the ASEAN countries with steel products and services for the construction sector, as well as the offshore and marine industries. In future, Steelaris will purchase CO2-reduced SALCOS®-steel from the Salzgitter Group via Salzgitter Mannesmann International GmbH in order to counteract the European CO2 tax that will take effect in 2026 and to fulfill Singapore's commitment to climate neutrality by 2050.
The first 380 tons of hot-rolled sheets from Group sister company Ilsenburger Grobblech GmbH are expected to be delivered by Salzgitter Mannesmann International GmbH in April 2024. The CO2-reduced SALCOS®-steel for this comes from Peiner Träger GmbH. The slabs are already being produced there from high-quality steel scrap using electric arc furnaces and continuous casting systems.
In the future, the Salzgitter Group will be pursuing the SALCOS® - Salzgitter Low CO2 Steelmaking transformation program, according to which the Salzgitter Group will be incrementally converting its steel production to hydrogen-based processes. The aim is to achieve virtually CO2-free production operations, starting as from 2026. The conventional blast furnace route is to be replaced by the production route via direct reduction and electric arc furnaces.
ANG Tee Seng, Managing Director of Steelaris explains: ”We are honoured to embark on this green journey with the Salzgitter group. Steelaris is confident by working together and creating a global network of partners, we will be able to build a sustainable steel supply chain for all our customers. We look forward to collaborating closely and to supply even more CO2 reduced SALCOS®-steel to our customers in the offshore, energy, construction and shipyard industry. The path to sustainability and green steel begins with this cooperation between our two companies.”
Alexander Soboll, Managing Director of Salzgitter Mannesmann International GmbH, summarizes the future cooperation as follows: "The cooperation with Steelaris has enabled us to build a bridge between Europe and Asia. In Steelaris, we have found a partner who, like us, not only places value on sustainability but also on quality – an expedient "match" for both parties. We are delighted to have achieved this thanks to the excellent cooperation with our colleagues in the Group."


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