Salzgitter AG and Grupo Arania conclude innovative green steel partnering agreement
21.06.2022 | Press release of Salzgitter AG
- First South European Company in the new partnering program
- Both companies realize the business chances in the evolving market of low CO2 steel products
Salzgitter AG and Grupo Arania have signed the innovative partnering agreement. Grupo Arania is the first South European customer who participates in Salzgitter’s way 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 south European steel processing industry Grupo Arania is a key customer of Salzgitter AG. Consequently, Arania 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 Carmelo Bilbao, CEO of the Groupo Arania, commented:
“For Arania, the company’s trust in Salzgitter as the leading homologated and certified steel producer in the realization of Low CO2-Steelmaking justifies this strong financial commitment. Arania takes the chance to receive the first steel quantities with a physically low CO2-footprint by a certified and homologated supplier.”
Ulrich Grethe, Head of steel production at Salzgitter AG, added:
“Arania as a leading South European steel processing company represents an important segment for the Salzgitter Group. Due to this strategic direction, this customer segment is a perfect fit for our strategy towards high quality demands in the European market. This partnering agreement confirms our pioneering position in the emerging markets for green steel also in the European market.”
Placing the partnering agreement in the context of the Group’s strategy, Gunnar Groebler, Chief Executive Officer of Salzgitter AG, stated:
"Transformation towards low CO2 steel production under our SALCOS® Program is a pillar of our“Salzgitter AG 2030” strategy. These partnering agreements show that our customers in Europe trust us to perceive added value in the transformation towards green steel and are actively contributing to achieve this change. Another great example for our new corporate vision “Partnering for Transformation”.
As Alberto Lejarreta, CEO of Grupo Arania commented:
“At Arania, we are happy to be the first South European steel processor who will fulfill the market needs of steel products with a physically low CO2 footprint. 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.”
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.