Hydnum Steel and Gonvarri Industries join forces to lead the green steel revolution in Iberia

Hydnum Steel, the first steelmaker to produce green steel on the Iberian Peninsula, has signed a landmark strategic agreement with Gonvarri Industries, a global leader in metal transformation, to drive the transition towards sustainable industrial practices in Spain and beyond.

The agreement, valued at €1 billion over an initial seven-year period, underscores a shared vision to promote green steel as a cornerstone for sustainable development. Hydnum Steel will supply decarbonised steel from its state-of-the-art green steel plant in Puertollano, set to become Spain’s leading producer with an annual capacity of 2.6 million tonnes of flat steel.

This partnership highlights both companies’ dedication to innovation and environmental responsibility, positioning Spain as a European leader in green steel production.

The collaboration between Hydnum and Gonvarri aims to integrate green steel into key sectors such as construction, energy, and automotive, offering high-quality, low-carbon products that meet the strictest environmental standards.

Hydnum Steel CEO Eva Maneiro highlighted the company’s ambitious mission: “It’s not enough to be part of the change; we must lead it. Every tonne of green steel and every innovation we bring to the market challenges conventions and pushes the industry towards a truly sustainable future.”

Josu Calvo, CEO of Gonvarri Industries, echoed this sentiment: “Green steel is essential to meeting the sustainability demands of our customers and society. This agreement with Hydnum Steel strengthens our commitment to cleaner and more responsible steel.”

With over 65 years of expertise, Gonvarri Industries is a Spanish multinational specializing in transforming flat steel, aluminium, and metal solutions for industries including renewable energy, infrastructure, and automotive. Operating 59 factories in 21 countries, the company is a global leader in high-quality metal products and a pioneer in adopting advanced, sustainable technologies.

 

 

Spain prioritises Hydnum Steel’s low-emission steel project

Spain’s Hydnum Steel (HS) has been declared a priority project by the Castilla-La Mancha regional government, Kallanish learns from the company. This will guarantee the investment preferential administrative processing and fast track project implementation.

HS plans to build the first green steel mill on the Iberian Peninsula. The project, a partnership consisting of the Helvella investment company, Siemens, ABEI Energy and Russula Corporation, will be located in Puertollano, in the Castilla-La Mancha region.

“Our project will lead, not only to the decarbonisation of the steel industry, but will also be a great driver for economic activity and employment, attracting auxiliary companies and promoting the service sector and infrastructure development,” says HS chief executive Eva Maneiro.

The Puertollano project’s new status will speed up its implementation, especially in matters of land and urban planning. Among other advantages, it implies economic and financial incentive measures.

The green steel plant is designed to use fossil-free energy throughout the manufacturing process and will gradually incorporate green hydrogen to substantially reduce CO2 emissions.

“Production will be in line with the sustainable development objectives in the steel sector and the circular economy, recycling scrap as raw material, minimising the use of water and valuing the waste and by-products generated during the manufacturing processes,” HS confirms.

The plant will satisfy the growing consumption of low-emission rolled steel in key sectors in Spain, such as automotive and construction.

“Flat steel demand continues to grow above production levels, producing a negative trade balance of 11 million tonnes each year at a European level and around 4-5mt in Spain,” Maneiro observes. “Furthermore, this demand is expected to grow at a steady rate of 1.3% until 2030. Therefore, the market is heading towards a supply deficit of low-emission flat steel which makes this type of project especially important. Added to this is Spain’s potential in terms of volume and price of renewable energy, with the lowest production costs in Europe.”

The project is valued at €1.65 billion ($1.73 billion) and will create more than 1,000 direct jobs. The plant, occupying an area of 1.3 million square metres, is expected to be operational in 2026.

Todor Kirkov Bulgaria

kallanish.com