Outokumpu has completed the acquisition of a 10% minority interest in Cronimet North-East after fulfilling closing conditions.
The latter is the German holding company of Cronimet’s business in northeastern Europe, holding subsidiaries in the surroundings of Outokumpu’s European production sites. Outokumpu and Cronimet announced last November the expansion of their long-term collaboration to further secure the sourcing and retain the supply of high-quality scrap within northeastern Europe (see Kallanish passim).
“We want to accelerate the circular economy in the Northeastern European market area and source recycled steel, which is collected here in the area, close to where it is needed. This is about expanding our existing successful cooperation to ensure that recycled steel that we acquire has the best possible quality and comes from as close as possible, allowing us to decrease the carbon footprint of our production,” says Outokumpu chief procurement officer Marc-Simon Schaar.
The parties will also cooperate on joint innovation and research with the goal to improve technologies to further reduce CO2 emissions, lower costs through better predictability and drive waste reduction within the supply chain, the steelmaker says.
As a shareholder, Outokumpu acts as a strategic partner in Cronimet’s northeastern business, while Cronimet retains full operational control of the companies involved. “Outokumpu does not see vertical integration into the supply chain of stainless steel scrap as part of its raw material strategy but considers cooperation and partnerships as the way forward,” the firm says.
Adam Smith Poland