Salzgitter AG and the Mendritzki Group conclude innovative green steel partnering agreement
28.04.2022 | Press release of Salzgitter AG
- Both companies occupy a leading position in CO2 reduction
- Next steps in creating green markets for low CO2 steel
Salzgitter AG and Mendritzki Holding GmbH & Co. KG have signed an innovative partnering agreement and are building on their long-standing business relationship, now also in the field of low CO2 steel products and downstream product processing.
The Salzgitter Group’s partnering program offers companies the possibility of securing a defined tonnage of green steel upfront as part of an economic commitment. This green steel is to be produced and delivered as from the end of 2025 as part of SALCOS® – SAlzgitter Low CO2-Steelmaking. Furthermore, both companies intend to cooperate in advancing and refining the development of steel grades.
As a leading company in the cold rolling industry, the Mendritzki Group is a key customer of Salzgitter AG. Consequently, Mendritzki expects its suppliers to deliver superior quality input material. Both companies achieve the highest standards not only in terms of quality, but also and most notably in sustainable production. In the area of CO2 reduction in the production and processing of steel, the two companies share a common goal of occupying leading positions.
As Roland Newe, CEO of the Mendritzki Group, commented: “For Mendritzki, the company’s strong trust in Salzgitter as a certified and homologated supplier that has consistently and reliably advanced and supported developments in this market segment is of particular importance.”
Ulrich Grethe, head of steel production at Salzgitter AG added: “The companies operating in the cold rolling industry represent a very important target segment for the Salzgitter Group in the hot strip area. Due to this strategic direction, this customer segment is a perfect fit for our portfolio of highest quality grades. This partnering agreement will enable us to develop processes and products together and confirms our pioneering position in the emerging markets for green steel.”
Placing the partnering agreement in the context of the Group’s strategy, Gunnar Groebler, Chief Executive Officer of Salzgitter AG, stated: “Transformation toward low CO2 steel production under our SALCOS® program is a pillar of our “Salzgitter AG 2030” strategy. These partnering agreements show that customers trust us in the course we are charting, perceive added value in the transformation toward green steel, and are actively contributing to shaping this change. Partnering for Transformation – our new corporate vision – is now being lived in practice in this dimension as well.”
As Christina Eckmann, head of strategic procurement at the Mendritzki Group, commented: “With Salzgitter, we can rely on the input material quality and supply performance being maintained at the highest levels – which is absolutely decisive for us. Given our business relationship of many years standing and the integration of the SALCOS® program into the existing production process we are convinced of the partnering agreements’ success.”
Low CO2 production through the hydrogen-based direct reduction process With the aim of massively reducing CO2 emissions in steel production, Salzgitter AG intends to gradually switch the production of steel to a hydrogen-based route under its SALCOS® – SAlzgitter Low CO2-Steelmaking project.
In contrast to the former process involving blast furnaces, hydrogen and green electricity will replace the carbon formerly required for producing steel. By harnessing this process, Salzgitter AG plans to incrementally lower the CO2 emissions in steel production to less than five percent of the original emissions volume.
Further information: https://salcos.salzgitter-ag.com/de/