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Gestamp targets low emissions steel from Salzgitter Flachstahl

L-R (Dr. Ralf Koch, Salzgitter Flachstahl GmbH & Javier Imaz, Gestamp).
L-R (Dr. Ralf Koch, Salzgitter Flachstahl GmbH & Javier Imaz, Gestamp).

This collaboration is related to the circular economy strategy that Gestamp is applying throughout its business model as part of its road to neutrality


Gestamp, the Spanish multinational specialized in the design, development, and manufacture of metal components for the automotive industry, and Salzgitter Flachstahl GmbH have signed an agreement to supply OEMs with low emissions steel components. As part of its ESG strategy, Gestamp will rely on low-CO2 steel produced using SALCOS® process and investigate the establishment of circularity routes, for example, combining steel deliveries to Gestamp´s European plants (such as Germany) with the return of scrap from these sites.

Partnering with Salzgitter is a further step in the circular economy that the Spanish multinational company is applying throughout its business model. Circularity is a key pillar for the decarbonization of the industry across the entire supply chain towards the goal of contributing, in the long term, to the Net Zero Car. SALCOS® (Salzgitter Low CO2 Steelmaking) is the transformation program pursued by the Salzgitter Group to progressively convert its steel production to hydrogen-based processes by 2026. It aims to achieve almost fully CO2-free production by 2033. This undertaking includes replacing the conventional blast furnace method with direct reduction plants and electric arc furnaces.

In line with the company´s roadmap to promote and extend the business’ circular economy model, Gestamp also focuses on the use of recycled steel. Securing the availability of high-quality scrap will support the increased usage of these low-emission steels in automotive parts. Along with the agreement, both companies will investigate the establishment of circularity routes that supply Salzgitter with scrap collected from Gestamp plants for the production of low-CO2 steel. The integration of scrap management into Gestamp’s business strategy allows for complete life-cycle traceability by integrating the collection, sorting and reuse of quality steel scrap into its production chain, in an environment where this secondary raw material is scarce.

Salzgitter Flachstahl can already provide its customers with low-CO2 steel via the so-called Peiner route. This involves producing slabs from high-quality steel scrap using the electric arc furnace at the company’s Peine site.

“The partnership between Gestamp and Salzgitter supplying low-emission steel and the opportunity of establishing circularity routes to return scrap for the production of SALCOS® is a progression towards the decarbonization of the industry, towards a Net Zero car,” says Javier Imaz, CPO (Chief Purchasing Officer) at Gestamp.

Dr. Ralf Koch, Head of Automotive Industry Sales at Salzgitter Flachstahl GmbH: “With our SALCOS® products, we have offered Gestamp the opportunity to supply its customers with low-CO2 steel from 2026 and become a pioneer of the route to climate-neutral products.”

Gestamp is a long-standing partner of Salzgitter Flachstahl for hot-rolled and cold-rolled flat steel products. These products are dispatched to Gestamp’s locations worldwide.


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