Salzgitter and Klöckner & Co team up to increase green steel volumes available in the market

Klockner & Co and the Salzgitter Group are to work together to increase the volume of green steel available on the market, the two German companies said May 23.

Steelmaker Salzgitter will deliver from the end of 2025, its CO2-reduced steel produced via its new hydrogen-based SALCOS production route to Becker Stahl-Service GmbH, a subsidiary of Klockner & Co that it will sale under its ‘Nexigen’ umbrella brand under which Klockner & Co is offering its CO2-reduced steel.

“Our partnership with the Salzgitter Group will enable us to considerably ramp up the availability of green steel for our customers, thereby significantly reinforcing the Nexigen brand offerings, ” Klockner & Co CEO Guido Kerkhoff said. “This enables us to assist our customers in consistently developing reliable and sustainable value chains.”

“A key success factor for SALCOS is close collaboration with customers and partners in line with our ‘Partnering for Transformation’ strategic mission,” Salzgitter CEO Gunnar Groebler said. “The keen interest from industry, such as from the automotive and household appliance sectors, and trading in our CO2-reduced products indicate that the market for green steel products is increasingly gaining traction.”

SALCOS is Salzgitter’s project to achieve carbon-neutral steel production in three stages, with the first stage starting production at the end of 2025. The gradual replacement of the blast furnaces currently in use by direct reduction plants and electric arc furnaces will make the Salzgitter Group in a position to save around 95% of the emissions from steel production by the end of 2033.

Klockner & Co has put its CO2-reduced products under the Nexigen brand — transparent, CO2-reduced solutions in materials, processing and logistics.

Platts, part of S&P Global Commodity Insights, assessed Northwest European hot-rolled coil carbon-accounted at Eur840/mt ($907/mt) ex-works Ruhr on May 22, up Eur20/mt on the day.

Author Annalisa Villa