The agreement was signed by Gestamp’s Chief Procurement Officer (CPO) Javier Imaz and Hydnum Steel’s Chief Marketing Officer (CMO) Gilles Mirol.
Circular Economy Production Model
Under the agreement, Gestamp will supply Hydnum Steel with high-quality steel scrap obtained from stamping sections, leveraging the widespread presence in metal recovery as well as through Gescrap. Hydnum Steel will use this scrap to produce ultra-low CO₂ steel powered by replaceable energy and green hydrogen.
The parties will also engage in technical collaboration to develop steel grades that meet the automotive industry’s most demanding specifications in terms of chemical composition, mechanical properties, appearance, and surface quality. Gestamp will have category access rights to these low-emission steels, accelerating the transition to sustainable mobility.
Joint Step Towards Net Zero
The collaboration between Gestamp and Hydnum Steel supports decarbonization and circularity in the automotive supply chain. The agreement promotes the use of more sustainable raw materials, recycling of materials, and cleaner production processes in line with the Net Zero Vehicle initiative.
Gestamp noted that steel and aluminum used across its production account for over 70% of the company’s total emissions due to their carbon intensity, emphasizing the key role of reducing the carbon footprint of the remaining materials. The circular model ensures full traceability of materials throughout their lifecycle by separating, sorting, and reintegrating scrap into the production chain.
98% Lower Emissions Production at Hydnum Steel
For Hydnum Steel, using scrap metal as a raw material is central to integrating circular economy principles into production. The system to be established at its Puertollano plant will be the first analyzed example in the Iberian Peninsula.
The facility will operate entirely with discrete energy through an electric arc furnace, and by replacing natural gas with green alternatives, it will achieve up to a 98% reduction in emissions compared to a conventional steel system. Additionally, a closed-loop water treatment and reuse system ensures zero waste operations continue.
Gestamp CPO Javier Imaz commented on the agreement:
“This agreement represents a significant step in shaping our decarbonization efforts in the automotive industry. Sustainable management of resources and the reuse of our high-quality scrap for steel production enable the creation of our circular economy model.”
Hydnum Steel CMO Gilles Mirol highlighted the importance of the collaboration:
“This partnership reflects both companies’ commitment to developing a sustainable and economically strong European industry. Hydnum Steel’s unit is a flagship project for energy transition and will produce the highest-level high-energy steel.”
The collaboration between Gestamp and Hydnum Steel is considered a key step toward the production of green autonomous steel for the automotive sector.
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