Stainless steel producer Outokumpu has acquired 10% stake in the CRONIMET North-East GmbH — an intermediate holding company which holds the shares in CRONIMET’s northeastern European companies — in a move to optimize its raw material cycle.
“This partnership is another step towards achieving the sustainable development goals: a low carbon footprint in the production of stainless steel with regional scrap and through shorter transport routes to Outokumpu’s stainless steel mills,” Jurgen Pilarsky, CEO of CRONIMET Holding GmbH said Nov. 7.
The CRONIMET Holding Group, headquartered in Karlsruhe, Germany, is a recycle company for stainless steel scrap and ferroalloys. More steelmakers are acquiring stakes in scrap producers to guarantee its own supply and increase companies’ sustainability, according to Outokumpu’s statement released Nov. 7.
In addition to supplying Outokumpu’s European stainless steel mills with CRONIMET’s stainless steel scrap from the sites in northeastern Europe, the two companies have also agreed to work together on innovation and research for the decarbonization of the stainless steel industry. The partnership also focuses on reducing costs through better planning on both sides and reducing waste within the supply chain.
“We are pleased to partner with CRONIMET as we share a common goal in terms of regional development — accelerating the circular economy in the Northeast European market area while paying attention to sustainability and CO2 reduction during transportation and stainless steel production,” Marc-Simon Schaar, Chief Procurement Officer at Outokumpu said.
The companies did not disclose the value of the operation or when the completion of the transaction is expected, as it is subject to customary closing conditions and regulatory approvals by the competition authorities.
Author: Annalisa Villa