Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Salzgitter Flachstahl GmbH has signed a contract to deliver green strip steel products with a low carbon emissions footprint by the end of 2021 to four German plants of Mercedes-Benz AG (MBAG). 


MBAG is the first automotive firm that has engaged Salzgitter Flachstahl for its green cold-rolled strip and galvanizing sheet steels. The steel products will be used in the cars’ body parts and structure. 


The green steel is expected to reduce carbon emissions by more than 66pc and is produced at its Peine mini mill. Salzgitter Flachstahl processes the products at its galvanizing plant. Transferring steel production from conventional blast oven furnace to electro-steel reduced carbon emissions by 66-75pc according to the VERIsteel Standard in Germany. 


Expanding its portfolio with green strip steel is an essential factor of Salzgitter’s environmental sustainability strategy to reduce carbon emissions by 95pc. Said chief executive offer Gunnar Groebler. Toward the objective, Salzgitter will systematically replace conventional steel production with hydrogen-based processes. 


Salzgitter Flachstahl is the largest business unit in the strip steel business segment of Salzgitter, which produces 5mn mt of crude steel and about 3.5mn mt of rolled steel annually. 65pc of sales from the location is in the automotive sector. Peine mill produced its green steel slab in November 2020. 


Davis Index inquired in regards to the volumes in the MBAG contract and the internal staging of volumes toward green steel at the facility and no comment was received at the time of publication. 


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