Salzgitter buys scrap recycler to secure supply for low CO2 steelmaking

German steel producer Salzgitter has acquired recycling company Must-Metalle-Container-Recycling as part of its strategy to secure supply for its low CO2 steelmaking transformation, it said Feb. 16.

The acquisition of the scrap trading company, based in Goslar in northwest Germany, closed on Feb. 15 for an undislcosed price and was made through Salzgitter’s subsidiary Deutsche Erz- und Metall-Union.

Must-Metalle-Container-Recycling manages a regional container provision and waste point business and relies for its supply predominantly on companies in the metalworking industry. Its downstream operations comprise sorting and processing for the targeted provision of quality scrap grades.

Salzgitter said the acquisition contributes to its 2030 strategy aimed at “circularity” and achieving low CO2 steelmaking under its SALCOS (Salzgitter Low CO2 Steelmaking Transformation) project.

For SALCOS, Salzgitter needs to significantly expand its scrap recycling capabilities and captive supply of high-quality secondary raw materials for its future steel production. With Must-Metalle-Container-Recycling in the portfolio Salzgitter will have ample scrap collection in the immediate vicinity of its flagship Flachstahl steelworks.

The SALCOS program will see the construction of two direct reduction plants and three electric arc furnaces (EAFs) at the mill in Lower Saxony to incrementally replace its blast furnaces and converters. The first of the three EAFs, with a crude steel capacity of 1.9 million mt/year, is scheduled to go live by the end of 2025, with full completion by 2033.

Must-Metalle-Container-Recycling will continue to operate as an independent company within Salzgitter under the name Harzer Schrott und Recycling.

Another European industry major, ArcelorMittal, has bought four scrap metal recycling companies over the last year boosting its captive scrap recycling in Europe by around 1.5 million mt/year as it develops its capability to deliver low-carbon emissions steel.

Platts, part of S&P Global, assessed Turkish imports of premium heavy melting scrap 1/2 (80:20) at $418/mt CFR Feb. 15, unchanged on day. The assessment gained $16/mt or 4% from this year-start but was $88 or 17.5% lower year on year.

— Ekaterina Bouckley