GMH Gruppe buys scrap company in Saarland
Germany’s GMH (Georgsmarienhütte) Gruppe is set to acquire ALBA Metall Saar GmbH, a scrap and metal trading company based in Bous, Saarland state. The acquisition is a further step in GMH Gruppe’s strategic expansion in the steel scrap market, it notes.
The acquisition agreement was signed at the end of July, and is now subject to the fulfilment of various closing conditions, which must be completed by 30 August, Kallanish understands. The Federal Cartel Office has already approved the transaction under antitrust law, GMH notes.
By broadening its geographical footprint into southwest Germany, GMH Gruppe says it will enhance its scrap recycling network and processing. The group’s headquarters and main mill is in Georgsmarienhütte, near Osnabrück in northern Germany, Lower Saxony. The group also owns a mill in Saarland, also located in Bous. Stahlwerk Bous is one of Germany’s lesser-known mills, as it produces only ingots for the group’s internal processes.
As part of the acquisition, ALBA Metall Saar GmbH will be renamed GMH Recycling Saar GmbH and will be integrated into GMH Gruppe’s organisational structure, with a full merger expected by 2025.
Christian Koehl Germany
Green lead markets require standardisation
Green lead markets should have the same standardisation in every European country, according to Luciana Filizzola, GMH Gruppe’s director sustainability and communications.
“If every country in Europe has the same standardisation, it would be wonderful to promote the green lead market,” she said at the Kallanish Europe Steel Markets 2024 conference in Milan last week. GMH recommends prioritising low-CO2 products in tenders, both directly and indirectly, and a uniform classification system for green steel products, such as Germany’s Low Emission Steel Standard (LESS) labelling system.
Vulcan Green Steel vice president Arnaud Guerendel added: “There is no international standard and that is a pity!”
Guerendel noted international standardisation is currently facing a problem. He gave the example of one organisation, which is lobbying for and working under the definition of below 0.4 tonnes of CO2 emissions per tonne of steel production for Scope 3 emissions. But there is another range that has the general consensus of being considered “green” steel, which is at under 0.6t of CO2 emissions per tonne.
He opined one cannot make all grades of steel under the same carbon intensity. For example, producers can make a basic grade if they use scrap and green electricity, as it will have a very low product carbon footprint (PCF). However, very sophisticated grades cannot be made from scrap, and it will a completely different footprint.
Hydrogen-based direct reduced iron will therefore need to be used to achieve net-zero production of these highly sophisticated grades.
“There’s no international standard, between the EU, USA, and rest of the world,” Guerendel said. This is especially the case since China manufactures over 55% of global steel and India is soon expected to cross 200 million tonnes/year. He emphasised the need to set dialogue with those regions and standardise.
Suhita Poddar India
