Under the partnership, steel scrap produced at Volvo Cars' Olofström plant in southern Sweden will be returned to Salzgitter AG's steel plant in Germany.
According to a statement from Salzgitter Group, the group already supplies Volvo Cars with high-quality flat steel. By 2026, a significant amount of steel scrap from the processing of these steels will also be received for reuse at the Salzgitter Flachstahl GmbH plant.
This will allow the steel to be recycled back into the production process without loss of quality and keep the material in the cycle. The high-quality scrap steel will also play an important role in SALCOS®, the Salzgitter Group's low-carbon steelmaking transformation program.
The scrap steel will be melted down in electric arc furnaces powered by green electricity into new low CO₂ steel products.
Sandrina Sieverdingbeck, Managing Director of DEUMU, stated: "This cooperation is a clear demonstration of our circularity strategy. It shows how industrial partnerships contribute to resource efficiency and decarbonization of the value chain. We are acting in line with our motto: Partnership for transformation."
End of idle trips: optimized rail transport
Rail logistics are also being restructured as part of the partnership. The Salzgitter Group already transports steel sheets to Sweden by train. However, the shipments are currently made by single-car freight transportation.
In the new system, the steel sheets will be sent to Sweden, while steel scrap from the Volvo Cars plant will be transported on the way back. In this way, efficiency will be increased with high-capacity, short transit times and direct train services both on the way to and from Sweden, and idle trips will be eliminated.
Despite the distance of around 700 kilometers, the use of 100% climate-neutral electric locomotives and high-capacity trains will create a low-emission and efficient material cycle.
The new closed-loop model will be realized in coordinated cooperation with companies within the group, including Salzgitter Mannesmann Handel, DEUMU and Salzgitter Flachstahl.
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